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Morocco’s currency, MAD rose slightly higher by 0.18% against the euro in the week between April 28, and May 4.
Over the same period, the Moroccan dirham fell by 0.33% against the US Dollar, according to data from Morocco’s central bank, Bank Al-Maghrib (BAM)
After reaching a one-month record level of 10.02 MAD per $1, the US dollar took a steady downward trajectory later the same day, falling to a floor price of MAD 9.98MAD before returning to the exchange rate of MAD10.006 and stagnating at the same level for the past two days.
On May 6, the US dollar reached its highest exchange rate against the Moroccan dirham since 2020, trading at MAD 10.0247.
In recent weeks, the US dollar has reached a 20-year all-time high following the Federal Reserve’s decision to hike interest rates by 0.5% to bring down soaring inflation.
The Ukraine war, mounting sanctions against Russia, China’s lockdown, and the modest economic recovery in Japan and Europe have all contributed to consolidating the greenback’s value, according to a report by the New York Times.
Market observers expect that the dollar value will increase even more as the Federal Reserve is likely to announce a new round of interest hikes to curb inflation.
Inflation trends have been on the rise since 2021 due to the economic fallout of the COVID-19 pandemic coupled with rising government spending.
Inflation in the US currently stands at 8.5%, more than four times the recommended rates.
Read Also: U.S. Dollars Reaches Two-Year High Against Moroccan Dirham
