Mohammedia – The liquidity deficit in the Moroccan banking system has further intensified in the final week of October, despite the interest rate environment being relatively stable.
According to the latest “Fixed Income Weekly” report from BMCE Global Research, the average liquidity deficit has increased by 5.19% to MAD 144.6 billion between October 23 and 29 in 2025.
This comes as the country’s central bank, Bank Al-Maghrib, has shown signs of caution in its liquidity interventions by reducing its short-term liquidity injections
The seven-day advances given out by the central bank were down MAD 3.35 billion, reaching MAD 72.6 billion. This indicates that Bank Al-Maghrib has been carefully managing liquidity as well as maintaining monetary discipline.
According to BMCE Capital analysts, this development indicates the efforts made by the central bank to calibrate its actions based on the market requirements and at the same time manage inflation.
On the other hand, the Treasury increased its placements as the maximum daily outstanding volume elevated to MAD 13.9 billion from MAD 10.9 billion a week earlier.
This rise can be attributed to improved Treasury cash flow management in the money market, possibly driven by higher revenue collections or more active liquidity placement operations.
The interplay between the activities of the Treasury and the actions of the central bank has been influencing the liquidity situation in the Moroccan financial system.
Read Also: Morocco’s Banking Liquidity Deficit Narrows Slightly to MAD 137.5 Billion in October
Even as the liquidity spread widened, interest rates were quite stable. The weighted average rate remained firm at 2.25%. This reflects that the interbank market performed in a stable manner.
The Moroccan Overnight Index Average (MONIA) slightly declined to 2.116%, reflecting a marginal relaxation in the very short-term market rates.
These factors reveal that liquidity constraints and funding costs can exist simultaneously, illustrating the central bank’s fine-tuned control over money market dynamics.
Bank Al-Maghrib will gradually lessen the intensity of its monetary interventions in the upcoming period. The institution aims to reduce the level of its week-long advances to MAD 66.5 billion, instead of MAD 72.56 billion.
This expected modification highlights the bank’s confidence in the self-regulatory ability of the market and the lack of necessity for more assistance.
