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Rabat– Morocco’s money supply (M3 aggregate) reached MAD 1,846.1 billion (approximately USD 179.6 billion) in October, maintaining an annual growth rate of 6.7%, the same pace as recorded in September, according to data from Bank Al-Maghrib (BAM).
This steady growth highlights the evolving dynamics of liquidity and financial activity in the Moroccan economy, with BAM indicating that it was driven by a combination of factors.
Bank credit to the non-financial sector saw a slowdown, with growth easing from 3.3% to 2.4%. Official reserve assets also recorded a decline in growth, dropping from 3.6% to 1.6%. In contrast, net claims on the central government increased significantly, rising by 10.4% compared to 8.4% in September.
The stagnation in M3 growth reflects diverse changes in monetary aggregates. Cash in circulation experienced an uptick, with growth accelerating from 10.1% to 10.6%. Meanwhile, savings accounts maintained steady growth at 3.6%.
However, demand deposits at banks showed a deceleration, growing by 8.7% compared to 10.2% in the previous month. Additionally, the decline in economic agents’ holdings in monetary UCITS (undertakings for collective investment in transferable securities) moderated, with a drop easing from -16.5% to -6%.
By institutional sector, household monetary assets recorded an accelerated growth of 6%, up from 5.8% in September. On the other hand, private non-financial corporations experienced a slowdown in asset growth, which dropped to 7.6%, down from 10.1%.
Bank Lending Dynamics
The growth of bank credit to the non-financial sector also saw a slowdown. Loans to private non-financial corporations grew by 1.5%, down from 2%, while public sector loans experienced a sharp decline in growth, rising by 2.7% compared to a robust 14.9% in September.
Household loans remained largely stagnant at 1%. However, personal loans saw an acceleration, with growth increasing from 2.1% to 2.5%. In contrast, loans to self-employed entrepreneurs continued to decline sharply, contracting by -10.6% after a drop of -7.2% in September.
By purpose, the evolution of bank lending to the non-financial sector reflected a slowdown in treasury loans, with growth falling from 5.1% to 0.9%. Equipment loans also experienced a slight deceleration, growing by 7.4% compared to 8.3%. Real estate loans remained almost stagnant at 2%, while consumer loans recorded slight growth, rising from 1.1% to 1.5%.
Non-performing loans (NPLs) showed stability, recording an annual growth rate of 3.5%. Their ratio to total credit stood at 8.8%, indicating sustained financial pressure within certain segments of the lending market.
Morocco’s financial sector displayed mixed trends in October, with steady money supply growth offset by slowdowns in certain lending and asset segments. These dynamics reflect the broader challenges and opportunities shaping the country’s economic landscape as it navigates evolving liquidity and credit conditions.
