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Moroccan dirham shows mixed performance as central bank boosts financial system

Moroccan dirham shows mixed performance as central bank boosts financial system
Monday 27 January 2025 - 09:50 By: Dakir Madiha
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The Moroccan dirham demonstrated varied performance in foreign exchange markets during January 16-22, appreciating 0.6% against the US dollar while declining 0.5% against the euro, according to Bank Al-Maghrib (BAM).

During this period, BAM reported no currency auction operations in the foreign exchange market. The country's official reserve assets reached MAD 368.4 billion ($36.1 billion), marking a 0.1% weekly increase and a 4% rise compared to the previous year.

The central bank made significant moves to support the financial system, injecting MAD 141.2 billion ($13.8 billion) through various mechanisms. This included MAD 57.4 billion ($5.6 billion) in seven-day advances, complemented by longer-term repos and secured loans valued at MAD 49.6 billion ($4.8 billion) and MAD 34.1 billion ($3.3 billion) respectively.

In the interbank sector, daily trading averaged MAD 2.4 billion ($235 million), with the interbank rate holding steady at 2.50%. BAM's January 22 tender provided additional seven-day advances totaling MAD 55.1 billion ($5.4 billion).

The Casablanca Stock Exchange experienced a downturn, with the Moroccan All Shares Index (MASI) declining by 1.9%, reducing its year-to-date performance to 6.8%. Key sectors contributed to this decline, including agro-food (-4%), construction and building materials (-2.6%), and banking (-1.8%).

Despite the stock market decline, trading activity increased, with weekly volumes rising to MAD 2.9 billion ($284 million) from the previous week's MAD 2.6 billion ($255 million). The central equities market dominated these transactions, reflecting ongoing market dynamics in Morocco's financial sector.

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