Rabat – Bank Al-Maghrib (BAM), Morocco’s central bank, has increased its interventions in the monetary market, reaching MAD 127 billion ($12.7 billion) between May 31 and June 6. This surge in interventions, as reported by Attijari Global Research (AGR), encompasses both short-term and long-term financing operations.
In simpler terms, BAM has ramped up its efforts to oversee the amount of money in circulation and regulate interest rates in the country during this timeframe.
During this period, short-term advances extended to seven days rose to MAD 42.6 billion ($4.2 billion) from the previous week’s MAD 37.4 billion ($3.7 billion) Meanwhile, long-term interventions remained steady at MAD 84.4 billion ($8.4 billion), according to AGR’s recent report titled “Weekly Hebdo Taux – Fixed income.”
This means that BAM provided more short-term funding to banks, which helps ensure liquidity in the banking system and supports lending to businesses and individuals.
Despite global monetary shifts, the Moroccan monetary market maintains stability. The European Central Bank’s recent decision to decrease its key interest rate, the first since July 2022, reflects broader economic trends.
Locally, interbank rates align with the 3% direct rate, while the Moroccan Overnight Index Average (MONIA) saw a minor uptick to 2.96% from the previous week’s 2.93%.
Despite a slight deceleration, the Treasury continues its participation in the monetary market, with an average weekly injection totaling MAD 17.4 billion compared to MAD 22.7 billion the week before.
This sustained market activity occurs ahead of the Moroccan central bank’s second policy meeting of 2024. Essentially, the stability observed reflects the confidence of investors and market participants in the Moroccan economy in the wake of ongoing global economic adjustments and uncertainties.
