The Moroccan dirham appreciated by 1.1% against the U.S. dollar and depreciated by 0.8% against the euro between February 27 and March 5, 2025. BAM reported stable official reserves, significant market interventions, and declines in the stock market indicated by drops in various indices. The trading volume and Price-to-Earnings Ratio also showed notable changes during this period.
The Moroccan dirham experienced a notable appreciation of 1.1% against the U.S. dollar and a depreciation of 0.8% against the euro in the week from February 27 to March 5, as reported by Bank Al-Maghrib (BAM). During this timeframe, BAM indicated that there were no foreign exchange operations conducted.
By February 28, the official reserve assets totaled MAD 367.9 billion (approximately $37.7 billion), reflecting minimal week-on-week change and a year-on-year increase of 2.3%. BAM’s average daily intervention volume was MAD 146.9 billion (about $14.9 billion), which included MAD 65.2 billion (USD 6.7 billion) in 7-day advances, MAD 47 billion (USD 4.8 billion) in long-term repurchase agreements, and MAD 34.7 billion (USD 3.5 billion) in guaranteed loans.
In the interbank market, the average daily trading volume increased to MAD 3.8 billion (USD 386 million), with an average interbank rate of 2.5%. On March 5, BAM injected MAD 66.1 billion (USD 6.7 billion) into the market through 7-day advances. In the stock market, the MASI index declined by 2.7% during the same period, leading to a year-to-date performance of 12.5%.
The stock market downturn was influenced by key declines, including a 2.9% reduction in the banking index, an 8% decrease in the real estate index, a 4% drop in telecommunications, and a 3.2% fall in transportation services. Additionally, the Price-to-Earnings Ratio (PER) reduced from 24.9 to 24 on a week-to-week basis, while the weekly trading volume decreased to MAD 1.4 billion (approximately $141 million) from MAD 3 billion (about $304 million) the previous week, largely attributed to activity in the central equities market.
In summary, the Moroccan dirham has shown mixed performance with appreciation against the U.S. dollar while depreciating against the euro. BAM reported stable official reserves and significant market interventions. However, the stock market faced notable declines across various indices, resulting in reduced trading volumes and a slight drop in the Price-to-Earnings Ratio. These factors combined underscore the evolving landscape of the Moroccan financial market.
Original Source: www.moroccoworldnews.com
