Moroccan Dirham Weakens Against Euro, Gains on Dollar Amid Reserve Growth

During this same period, no auction operation was carried out on the foreign exchange market. As of July 10, 2020, BAM noted a week-on-week increase of 0.8% and a year-on-year increase of 24% in official reserve assets, which stood at 293.5 billion dirhams (MMDH).

This same week saw Bank Al-Maghrib inject 106.5 MMDH, including 40 MMDH in the form of 7-day advances on call for tenders. We note 34.6 MMDH in the form of repurchase agreements, 28.9 MMDH as part of the support program for the financing of very small, small and medium-sized enterprises (VSMEs) and 3 MMDH for foreign exchange swap operations.

While the daily trading volume stood at 6.6 MMDH on the interbank market, the interbank rate for its part stood at an average of 1.5%. However, the Masi, which represents the benchmark index of the Casablanca stock exchange, recorded a 0.8% increase on the stock market, thanks to increases in the sectoral indices of "telecommunications" of 4% and "transport services" of 4.4%, according to the same source. And to point out that the indices of the "distributors" and "agri-food" sectors, on the other hand, decreased by 3.2% and 0.6% respectively.

The central equity market is performing well. Here in particular, the average daily volume reached 309.3 MDH after 173.3 MDH the previous week. Meanwhile, the total trading volume stood at 311.5 million dirhams (MDH) compared to 221.8 MDH a week earlier, the same source points out.

As of July 17, one US dollar was worth 9.581 dirhams, while one euro was exchanged for 10.946 dirhams.