Rabat – Morocco’s national currency depreciated against the US dollars, losing an average of 0.98% of its value between July 7 and July 13.
Over the same period, the Moroccan dirham edged higher against the Euro, rising by 0.30% against the European central currency.
This comes at a time when the international currency exchange market has witnessed for the first time a drop of the Euro against the dollar.
The Eurozone central currency hit a historical low of $1 on July 12, its lowest level in over 20 years.
Read also: Moroccan Dirham Appreciates Against Euro
The drop also marked a 12% decrease in the Euro’s value against the US dollar since the start of the start of 2022.
According to many experts, the euro has been especially exposed to the spillover from the war in Ukraine and the looming recession threatening to overtake the block.
While the Eurozone grapples to mitigate the economic fallout from the Ukraine conflict, the US dollar has reached 20-year high levels against other currencies, especially those of emerging markets.
The soaring value of the US dollar is primarily the result of tighter monetary policies enacted by the country’s central bank, the Federal Reserve, in order to control inflation.
Adding to the tighter monetary policies in the US, concerns over the state of the global economy in certain regions is driving demand up for the currency by investors in an effort to hedge their bets against a possible economic relapse.
The drop in the Euro might be the first sign of the economic recession set to overtake the European continent.
Earlier this week, the American rating agency Fitch warned that the conflict in Ukraine threatens Europe’s energy security.
As fears mount over the possibility of Russia discontinuing gas exports to Europe, Fitch’s analysis concluded that the European Union could enter into a new recession that would resonate across emerging markets with close economic ties to the Eurozone.
