Casablanca – Days following the end of the Eid Al Adha vacation week, the Moroccan monetary market is gradually catching its breath, returning to the MONIA (Moroccan Overnight Index Average) equilibrium rates, according to Attijari Global Research (AGR).
“After reaching high levels of 1.46% at the beginning of the week, MONIA rates returned to equilibrium and were trading around 1.43% at the end of the week,” AGR indicated in its “Weekly Rates – Fixed Income” note for the week that ran from July 8 to 14.
According to the AGR report, the weekly average stayed consistent at 1.45% over this period and was due to increased interventionism from Bank Al-Maghrib (BAM), Morocco’s central bank.
In particular, BAM expanded its liquidity injections through 7-day advances to more than 52 billion MAD ($4.9 billion), completely fulfilling the Moroccan market’s banking needs.
According to AGR analysts, these advances continue to be a primary monetary policy weapon for regulating bank liquidity in this era of severe cash strain.
Under these conditions, said the analysts, the balance of interbank rates has remained unaffected, perfectly aligned with the policy rate of 1.50%.
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The AGR report also notes that the Moroccan General Treasury’s money market investments reached an average of 10 billion MAD ($960 million) last week, up from 8.2 billion MAD ($787 million) the previous week.
The Treasury raised 2 billion MAD ($192 million) at the end of this auction session, against a demand of 2.7 billion MAD ($259 million), the report adds. As a result, the session satisfaction rate came out at 76%, one of the highest of this year so far.
