Rabat – After weeks of deteriorating value against the US dollar, Morocco’s national currency MAD maintained the same exchange value against the dollar between July 28 and August 3, according to data from Morocco’s central bank, Bank Al-Maghrib (BAM).
The current exchange rate of the US dollar against the Moroccan dirham is set at MAD 10.34, BAM said.
During the same period, the Moroccan dirham edged lower against the Euro, losing 0.26% of its value, with €1 currently valued at MAD 10.55.
After losing more than 10% of its value against the US dollar in the past six weeks, the Euro has been showing signs of recovery in the past five days, regaining 0.3% of its value against the USD.
The recent drop in the euro is due to the European Union’s high exposure to conflict in Ukraine and the potential recession that is likely to overtake the continent.
While the EU grapples to address the economic spillover from the Ukraine conflict, the US dollar soared to its highest level in 20 years.
The USD’s rise in value is the primary result of the tighter monetary policy the Federal Reserve – the US’ central banking system – enacted to tame inflation.
Concerns over a possible relapse in the global economy are also triggering a rise in the USD, driving its value even higher, according to experts.
Read also: Moroccan Dirham Gains 0.86% Against Dollar, 0.30% Against Strong Euro
The current conflict in the European Union’s eastern borders is exposing the block to the prospect of energy shortages. In the case of an energy shortage, the EU is likely to enter a new recession only two years after the COVID-induced recession, experts warn.
The recession scenario seems especially imminent as fears mount over the possibility of Russia discontinuing gas exports to Europe in response to the historical sanctions the west has imposed on the Kremlin.
