Between February 27 and March 5, the Moroccan dirham gained 1.1% against the U.S. dollar and lost 0.8% against the euro. Bank Al-Maghrib’s total reserve assets remained stable. Despite a decline in the MASI index, the interbank market showed increased trading volumes. Weekly trading volume in equities dropped significantly, alongside a decrease in the Price-to-Earnings Ratio.
The Moroccan dirham experienced a 1.1% appreciation against the U.S. dollar and a 0.8% depreciation against the euro from February 27 to March 5, as reported by Bank Al-Maghrib (BAM). During this timeframe, no foreign exchange operations were conducted according to BAM’s weekly bulletin.
As of February 28, the official reserve assets were recorded at MAD 367.9 billion (approximately $37.7 billion), showing little change from the previous week and a year-on-year increase of 2.3%.
BAM reported an average daily intervention volume of MAD 146.9 billion (about $14.9 billion) during this period. This 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.
In the interbank market, the average daily trading volume increased to MAD 3.8 billion ($386 million), while the interbank rate stabilized at an average of 2.5%. On March 5, BAM injected MAD 66.1 billion ($6.7 billion) in 7-day advances.
Stock market performance showed a decline, with the MASI index dropping 2.7% during the same period, marking a year-to-date performance of 12.5%. This decline was mainly driven by a 2.9% drop in the banking index, an 8% decrease in the real estate sector, a 4% decline in telecommunications, and a 3.2% drop in transportation services.
The Price-to-Earnings Ratio (PER) fell from 24.9 to 24 week-on-week, indicating a decrease in valuation. The total weekly trading volume on the central equities market reached MAD 1.4 billion ($141 million), significantly down from MAD 3 billion ($304 million) in the previous week.
In summary, the Moroccan dirham appreciated against the U.S. dollar while depreciating against the euro. BAM reported stable reserve assets and notable daily intervention volumes, amidst a declining stock market characterized by a drop in major indices. Investments included substantial amounts in various financial instruments, which did not offset the downturn in trading volumes and valuations reflected by the decreased Price-to-Earnings Ratio.
Original Source: www.moroccoworldnews.com
