Casablanca, Morocco – The Bank of Morocco has reported a modest 0.50% depreciation of the Moroccan dirham against the US dollar and a 1.24% depreciation against the Euro during the period spanning from August 24 to August 30, 2023. In practical terms, this means that 1 Moroccan dirham is now worth slightly less when exchanged for US dollars, while it also lost some value compared to the Euro.

In its weekly bulletin, the bank clarified that there were no exchange market tenders conducted during this period, suggesting that the central bank did not actively intervene to influence exchange rates.

Furthermore, the official reserve assets reached a substantial (approx. $35 billion) on August 25, 2023. This marks a 1% increase compared to the previous week and a 5% increase on a yearly basis, indicating that Morocco’s foreign currency reserves are on the rise.

Throughout the week from August 24 to August 30, 2023, the total interventions by the Bank of Morocco amounted to a significant (approx. $10.3 billion). These interventions included (approx. $3.8 billion) in the form of 7-day advances based on requests for bids, (approx. $4.13 billion) in the form of long-term repurchase agreements, and (approx. $2.45 billion) in the form of secured long-term loans.

In the interbank market, the average daily trading volume was (approx. $236 million), with the average interbank interest rate standing at 3% during this period. On August 30 (with a maturity date of August 31), the Bank of Morocco injected a substantial (approx. $32.7 billion) in the form of 7-day advances.

On the stock exchange front, the “Mazi” index rose by 0.3%, bringing its year-to-date performance to an impressive 11%. This weekly development primarily reflects a 5.8% increase in the real estate sector indicators, a 4.2% increase in the electricity sector, and a 3.2% increase in the insurance sector. Conversely, the indicators for the food industry and “real estate recruitment companies” sectors both decreased by 1% and 1.9%, respectively.

Regarding the total volume of trades, it amounted to (approx. $32.6 million), down from 344.3 million dirhams the previous week. In the central stock market, the average daily volume stood at (approx. $6.5 million), down from 85.9 million dirhams.

These insights into Morocco’s financial and exchange markets provide a clearer picture of the country’s economic landscape. They highlight the subtle shifts in exchange rates and the robust performance of various sectors within the economy, while also showcasing significant financial activity and reserves.