The Moroccan dirham appreciated against major global currencies last week, gaining 0.8 percent against the euro and 0.3 percent against the US dollar, even as official reserve assets recorded a slight decline, according to central bank data.
The movement reflects a relatively stable foreign exchange environment in Morocco, supported by continued liquidity injections from the country’s central bank, Bank Al-Maghrib, which has maintained significant market operations to ensure financial stability.
During the period from May 7 to May 13, official reserve assets stood at 468.6 billion Moroccan dirhams, equivalent to about US$46.9 billion, marking a 0.2 percent weekly decline but a 17.7 percent increase year-on-year.
Despite the slight drop in reserves, the central bank continued to actively support liquidity in the financial system, with daily interventions averaging 155.5 billion dirhams (US$15.5 billion).
These interventions included short-term advances, longer-term repurchase agreements, and guaranteed lending facilities aimed at ensuring adequate cash flow in the banking sector.
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Foreign exchange swap operations remained minimal, accounting for just 120 million dirhams (US$12 million), reflecting limited volatility pressures in the currency market.
On the interbank market, average daily trading volume stood at 1.8 billion dirhams ($180 million), while the interbank lending rate remained unchanged at 2.25 percent, signalling steady monetary conditions.
The central bank also injected 62 billion dirhams ($6.2 billion) through seven-day advances following its most recent tender operation, underscoring its continued commitment to liquidity management.
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In equity markets, the Casablanca Stock Exchange’s benchmark MASI index slipped 0.2 percent over the week, reflecting mixed sector performance.
Declines were led by banking stocks, which fell 1.8 percent, as well as building and construction materials (-1.9 percent), transport services (-3.1 percent), and healthcare (-5.3 percent).
However, the mining sector recorded strong gains, rising 15.2 percent, helping to partially offset broader market weakness.
Trading activity also picked up, with weekly volumes rising from 934 million dirhams ($93.4 million) to 1.4 billion dirhams ($140 million), indicating improved investor participation despite the overall index decline.
Economists say the dirham’s appreciation against the euro and dollar reflects a combination of stable monetary policy, steady inflows and limited foreign exchange pressure, even as global markets remain volatile.
The performance also highlights Morocco’s relatively cautious but active liquidity management strategy, which aims to balance inflation control with support for economic activity.
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While reserve assets dipped slightly week-on-week, the overall year-on-year increase suggests continued strengthening of external buffers, providing a degree of resilience against external shocks.
Analysts note that sustained stability in the dirham will depend on export performance, tourism inflows and broader global monetary conditions in the months ahead.
