Morocco’s Banking Liquidity Deficit Drops by 8.26% in January 2025

Rabat – Morocco’s banking liquidity deficit improved by 8.26% to reach MAD 136.8 billion ($13.4 billion) between January and 22.

According to BMCE Capital Global Research (BKGR), this development reflects the ongoing benefits of fiscal amnesty, which has provided relief to the financial system.

Bank Al-Maghrib (BAM) reduced its seven-day advances by MAD 2.32 billion ($228 million), bringing the total to MAD 57.4 billion ($5.6 billion).

At the same time, treasury placements declined significantly, with the daily maximum balance dropping to MAD 12.3 billion ($1.2 billion) from MAD 29.4 billion ($2.9 billion) recorded the previous week.

The weighted average interest rate remained steady at 2.5%.

However, the Moroccan Overnight Index Average (MONIA), a key benchmark for short-term money market rates based on Treasury bond-backed repo transactions, slipped to 2.464%.

This change points to healthier financial conditions while giving Morocco’s economy some much-needed space to grow and adapt.

Lower deficits could support government borrowing costs and help maintain financial stability.

BKGR expects BAM to continue scaling back its interventions, with next week’s cash advances projected at MAD 55.1 billion ($5.4 billion).

In 2024, Morocco’s financial system showed strong strength. The banking sector saw a 17.5% increase in profits during the first half of the year.

At a meeting in Rabat, the Systemic Risk Coordination and Surveillance Committee (CCSRS), which monitors the financial system, pointed out that banks had plenty of capital to cover risks, with their solvency and Tier 1 capital well above required levels.

The report also reassured that the banking sector is prepared for tough economic situations, as tests showed banks could handle potential financial shocks without trouble.