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Mohammedia – Morocco’s average banking liquidity deficit eased by 2.87% during the week of October 16 to 22, 2025, settling at MAD 137.5 billion, according to BMCE Capital Global Research (BKGR).
The latest Fixed Income Weekly report highlights a gradual improvement in the liquidity situation, reflecting Bank Al-Maghrib’s (BAM) continued efforts to balance money market conditions amid steady interest rates and moderate Treasury activity.
BKGR’s data show that BAM increased its seven-day advances by MAD 19.88 billion, bringing the total amount of liquidity injections to MAD 75.9 billion.
This rise signals the central bank’s intention to ensure sufficient short-term liquidity in the banking system, maintaining the smooth functioning of interbank transactions and monetary stability.
In contrast, Treasury placements experienced a noticeable decline, with the maximum daily outstanding amount falling to MAD 10.9 billion, compared to MAD 21.3 billion during the previous week.
This drop indicates less demand from the Treasury for short-term placements, possibly due to improved cash flow management or a more balanced fiscal position during the period.
Stable rates and cautious outlook
Meanwhile, the weighted average interest rate remained steady at 2.25%, underscoring the central bank’s commitment to maintaining a stable monetary environment.
The Moroccan Overnight Index Average (MONIA)—the benchmark rate based on overnight secured transactions backed by Treasury bonds—slightly decreased to 2.24%, suggesting a mild relaxation in overnight funding conditions.
According to BKGR, BAM is expected to slightly reduce its interventions in the coming week, setting the volume of seven-day advances at around MAD 72.56 billion.
This measured adjustment aligns with the central bank’s cautious approach to liquidity management, aiming to strike a balance between supporting economic activity and maintaining price stability.
The recent developments come amid broader expectations that Morocco’s money market conditions will remain relatively stable through the end of 2025.
While the liquidity deficit persists, its gradual improvement reflects stronger coordination between monetary and fiscal authorities.
The easing of the banking liquidity deficit points to a more comfortable position for Moroccan banks as they continue to navigate an environment marked by moderate inflation, sustained credit demand, and evolving monetary dynamics.
