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BAM Amplifies Monetary Interventions Amid Market Stability

Tuesday 11 June 2024 - 10:30
BAM Amplifies Monetary Interventions Amid Market Stability

The Moroccan economy continues to display resilience and investor confidence, maintaining market stability despite global economic fluctuations. Bank Al-Maghrib (BAM), the country's central bank, has significantly increased its interventions in the monetary market, injecting MAD 127 billion ($12.7 billion) between May 31 and June 6. This marked escalation, documented by Attijari Global Research (AGR), includes both short-term and long-term financing operations.

In essence, BAM has intensified its efforts to manage the money supply and regulate interest rates within this period.

During this timeframe, seven-day short-term advances surged to MAD 42.6 billion ($4.2 billion), up from the previous week's MAD 37.4 billion ($3.7 billion). Long-term interventions held steady at MAD 84.4 billion ($8.4 billion), according to AGR's recent report, "Weekly Hebdo Taux – Fixed Income."

This indicates that BAM has provided more short-term funding to banks, ensuring liquidity in the banking system and supporting lending to businesses and individuals.

Despite global monetary shifts, the Moroccan monetary market remains stable. The European Central Bank's recent decision to decrease its key interest rate for the first time since July 2022 mirrors broader economic trends.

Locally, interbank rates are consistent with the 3% direct rate, while the Moroccan Overnight Index Average (MONIA) experienced a slight rise to 2.96% from the previous week's 2.93%.

Although there was a minor slowdown, the Treasury continues its active participation in the monetary market, with an average weekly injection of MAD 17.4 billion compared to MAD 22.7 billion the prior week.

This sustained market activity precedes the Moroccan central bank's second policy meeting of 2024. In essence, the observed stability underscores the confidence of investors and market participants in the Moroccan economy, navigating through ongoing global economic adjustments and uncertainties.


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