Record Bank Liquidity Demand in Morocco as Consumption Soars

The need for bank liquidity reached an average of 95.5 billion dirhams per week in August, to the point where BAM has just decided to inject more liquidity into the market.

The decision was made, according to Aujourd’hui le Maroc, at the last meeting of the Bank Al-Maghrib Council. The body also considered that the current level of the key rate of 2.25% remains appropriate and decided to keep it unchanged.

As for inflation, the newspaper reports, according to information received from BAM, that "it has slowed down sharply, standing at 0.2% on average over the first eight months of the year, in relation to the fall in prices of volatile food products".

According to Bank Al-Maghrib’s forecasts, it should continue to evolve at low levels in the coming months to come out at 0.4% over the whole year.

In a more general framework, BAM announces that the budget deficit excluding privatizations has widened over the first eight months of the year, from 5.8 billion dirhams to 34.9 billion.

It is also specified that global expenditure increased by 5.4%, the consequence of an increase in expenditure under "other goods and services".