Moroccan Dirham Weakens Against Euro, Strengthens vs Dollar as Reserves Dip

During this period, no auction operation was carried out on the foreign exchange market, BAM specifies, while noting that as of November 27, 2020, the outstanding official reserve assets stood at 292.7 billion dirhams (MMDH), down 0.4% from the previous week, and up 18.1% year-on-year.

BAM reports that an amount of 103.8 MMDH was injected, including 38.9 MMDH in the form of 7-day advances on call for tenders and 23.9 MMDH in the form of repurchase agreements, during the same period. Similarly, 33.6 MMDH and 7.4 MMDH were injected respectively under the TPME financing support programs and for foreign exchange swap operations.

On the interbank market, the average daily trading volume stood at 5.6 MMDH. As for the interbank rate, it averaged 1.5%. At the call for tenders on December 2 (value date December 3), the central bank injected 47.7 MMDH in the form of 7-day advances.

On the stock market, the MASI depreciated by 1.3%, bringing its underperformance since the beginning of the year to 9.9%. This development is explained by the declines in the sectoral indices of "banks" by 2.1%, "building and construction materials" by 1.2% and "insurance" by 3.9%. The indices of "mining" and "distributors" recorded increases of 4.1% and 1.7% respectively.

As for the overall trading volume, it amounted to 384.9 million dirhams (MDH), after 735.9 MDH the previous week. Regarding the average daily volume on the central equity market, it stood at 76.9 MDH against 142.3 MDH last week.