Moroccan Dirham Sees Modest Gains Against U.S. Dollar Amid Market Fluctuations
Between February 27 and March 5, 2025, the Moroccan dirham appreciated by 1.1% against the U.S. dollar but depreciated by 0.8% against the euro. Bank Al-Maghrib reported a steady reserve of MAD 367.9 billion and significant daily intervention activity. Despite the dirham’s fluctuation, the stock market faced a 2.7% decline in the MASI index, influenced by several sector decreases.
The Moroccan dirham witnessed a 1.1% appreciation against the U.S. dollar while it depreciated by 0.8% against the euro between February 27 and March 5, as reported by Bank Al-Maghrib (BAM). It is notable that there were no foreign exchange operations during this time period, as indicated in BAM’s weekly bulletin.
As of February 28, the official reserve assets totaled MAD 367.9 billion (approximately $37.7 billion), reflecting stability from the previous week and a year-on-year increase of 2.3%. BAM’s average daily intervention volume during this period was MAD 146.9 billion ($14.9 billion), which included MAD 65.2 billion ($6.7 billion) in 7-day advances, MAD 47 billion ($4.8 billion) in long-term repurchase agreements, and MAD 34.7 billion ($3.5 billion) in guaranteed loans.
Additionally, the interbank market exhibited an increased average daily trading volume of MAD 3.8 billion ($386 million), with the interbank rate averaging 2.5%. On March 5, BAM injected MAD 66.1 billion ($6.7 billion) in 7-day advances during its auction, effective March 6.
The stock market, however, experienced a decline, with the MASI index dropping 2.7% in the same timeframe, aggregating a year-to-date performance of 12.5%. This decline was significantly influenced by a 2.9% decrease in the banking index, an 8% dip in the real estate and development index, and 4% and 3.2% declines in telecommunications and transportation services, respectively.
Finally, the valuation metric, Price-to-Earnings Ratio (PER), reduced from 24.9 to 24 week-on-week. The overall weekly trading volume decreased to MAD 1.4 billion ($141 million), down from MAD 3 billion ($304 million) in the preceding week, with trading primarily concentrated in the central equities market.
In summary, the Moroccan dirham appreciated against the U.S. dollar while declining against the euro in early March. Bank Al-Maghrib’s activities demonstrated significant interventions in the financial market, even as stock market indices encountered downward trends. The reduction in trading volumes and the decline in the Price-to-Earnings Ratio also underscore the prevailing market conditions during this period.
Original Source: www.moroccoworldnews.com
