Moroccan Dirham Weakens Against Euro, Gains on Dollar as Foreign Reserves Dip

No foreign exchange auction was carried out during this period, BAM said in its latest weekly indicator bulletin. Official reserve assets are around 287.7 billion dirhams (MMDH) as of June 5, a decrease of 0.5% from the previous week, an increase of 20.9% year-on-year, the same source said.

During the same period, the central bank injected an amount of 39.9 MMDH in the form of 7-day advances on call for tenders. With injections of 43.4 MMDH in the form of repurchase agreements, 21.1 MMDH under the TPME financing support program and 2.8 MMDH for foreign exchange swap operations, the total outstanding interventions stand at 107.2 MMDH, the same source points out.

In the interbank market, the daily trading volume stood at 4.7 MMDH. As for the interbank rate, it stands at around 2% on average during the same period. BAM says it has injected 33 MMDH in the form of 7-day advances at the June 10 call for tenders (value date June 11).

On the stock market, the MASI depreciated by 0.8%, bringing its underperformance since the beginning of the year to 17.5%. As for some sector indices, they are experiencing a downward trend with respective rates of 5.8%, 0.9% and 0.7% for "buildings and construction materials", "telecommunications" and "banks". Conversely, the indices of the "insurance" and "oil and gas" sectors recorded an increase of 3.6% each.

Regarding the trading volume, it stood at 1.1 MMDH against 3.4 MMDH the previous week, while the average daily amount of trades on the central equity market reached 213.6 million dirhams (MDH) after 164.3 MDH.

As of June 12, the dollar was worth 9.649 dirhams, while the euro was trading at 10.904 dirhams.