Moroccan Dirham Gains 0.6% on Dollar, Weakens Against Euro

Rabat – The Moroccan dirham strengthened by 0.6% against the US dollar but fell by 0.5% against the euro during the week of January 16 to 22, according to Bank Al-Maghrib (BAM).

Morocco’s central bank noted that no currency auction operations took place in the foreign exchange market during this period.

By this month, the country’s official reserve assets stood at MAD 368.4 billion ($36.1 billion). This reflects a slight uptick of 0.1% from the previous week and a 4% year-on-year rise.

Additionally, BAM injected a total of MAD 141.2 billion ($13.8 billion) into the financial system during the week.

This included seven-day advances amounting to MAD 57.4 billion ($5.6 billion), along with longer-term repos and secured loans worth MAD 49.6 billion ($4.8 billion) and MAD 34.1 billion ($3.3 billion), respectively.

In the interbank market, the average daily trading volume reached MAD 2.4 billion ($235 million), with the interbank rate remaining steady at 2.50%.

During its tender on January 22, BAM provided seven-day advances totaling MAD 55.1 billion ($5.4 billion).

Stock market records decline

The Moroccan All Shares Index (MASI) of the Casablanca Stock Exchange dropped by 1.9% over the week, reducing its year-to-date performance to 6.8%.

This decline stemmed from losses in key sectors, with the agro-food index falling by 4%, construction and building materials by 2.6%, and banking by 1.8%.

Weekly trading volumes on the stock exchange rose to MAD 2.9 billion ($284 million), up from MAD 2.6 billion ($255 million) the previous week. Most transactions were concentrated in the central equities market.

This mixed financial picture portrays Morocco’s resilience despite challenges in the global market, while balancing gains in currency reserves with fluctuations in stock performance.