Moroccan Dirham Weakens Against Dollar, USD/MAD Pair Rises 1.19%

New rebound of the USD/MAD pair. In its latest Weekly MAD Insights - Currencies, AGR indicates that it went from 10.25 to 10.37, an increase of 1.19%. This surge in the USD/MAD pair is explained by a basket effect of +0.40% linked to the strengthening of the dollar internationally against a liquidity effect to the detriment of the MAD of +0.79%.

AGR analysts note that import flows were relatively higher this week, which has led to tensions on MAD liquidity, and that liquidity spreads have deteriorated by +81 BPS to 3.26%.

Stressing that the volatility of the EUR/USD pair should depend on the process of lowering inflation between the United States and the Euro zone, AGR recommends "to exporters in dollars to reduce their level of coverage over the next two months, in order to benefit from the relative stability of the USD/MAD pair".