Moroccan Dirham Gains 1.08% Against USD in November

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Morocco’s currency, the dirham, exhibited significant growth, showing remarkable strength against both the US dollar and the Euro during the period between November and December 2023, according to the latest report from Morocco’s Central Bank (Bank Al-Maghrib/BAM).

As per BAM’s Monthly Review of the Economic, Monetary, and Financial Situation, the Moroccan dirham appreciated by 1.08% against the US dollar within this timeframe. Additionally, the national currency experienced a modest uptick of 0.16% against the Euro.

The report underscores the notable absence of foreign currency auctions, which have been a collaborative effort between Bank Al-Maghrib and commercial banks, since December 2021.

Analyzing the interbank market, the data reveals a significant year-on-year increase of 91.2% in the volume of foreign currency exchanged for dirhams, totaling a noteworthy MAD 77.3 billion in November 2023.

Further insights into banks’ transactions with customers unveil interesting trends. In November, spot purchases amounted to MAD 27.5 billion, while forward purchases reached MAD 21.1 billion. These figures mark a departure from the previous year, where the corresponding values were MAD 41.7 billion and MAD 37.2 billion, respectively.

Sales transactions depicted a decline in volume, with spot transactions totaling MAD 29.4 billion and forward transactions amounting to MAD 5 billion. A comparison with the previous year’s figures of MAD 44.5 billion and MAD 13.9 billion, respectively, underscores the shifting dynamics within Morocco’s foreign exchange market.

The recent performance of the Moroccan dirham showcases a blend of stability and adaptability, reflecting positively on the country’s economic prospects and resilience amidst global economic uncertainties.