Moroccan Dirham Weakens Against Euro and Dollar, Central Bank Reports

BAM indicates that no auction operations were carried out on the foreign exchange market during the period from October 1 to October 7, 2020. The official reserve assets as of October 2, 2020 stood at 295.1 billion dirhams (MMDH), down 0.2% from the previous week and up 23% year-on-year.

During the period from October 1 to October 7, the central bank injected a total of 103 billion dirhams, including 38.9 MMDH in the form of 7-day advances on tender, 30.6 MMDH in the form of repurchase agreements. As part of the support program for SME financing, 28.7 MMDH were injected and 4.9 MMDH for foreign exchange swap operations.

Regarding the interbank market, the average daily trading volume was 7.5 MMDH and the interbank rate averaged 1.5%. Also, during the tender on October 7 (value date October 8), Bank Al-Maghrib issued a total of 37.9 MMDH in the form of 7-day advances, the same source said.

On the stock market, the Masi gained 2.2%, bringing its underperformance since the beginning of the year to 16.1%. This development is mainly justified by the increases in the sectoral indices of "banks" by 2.9%, "buildings and construction materials" by 3.5% and "telecommunications" by 2.1%.

On the other hand, the real estate and utilities indices fell by 1.9% and 1.8% respectively. On the central equity market, the average daily volume amounted to 67.6 million dirhams, compared to 42.1 million dirhams the previous week, according to the MAP.