The Moroccan dirham appreciated by 1.1% against the U.S. dollar, while depreciating by 0.8% against the euro from February 27 to March 5. Official reserves stood at MAD 367.9 billion, and BAM conducted significant interventions. The MASI index fell by 2.7%, largely due to declines in banking, real estate, and telecommunications sectors, affecting market valuations.
The Moroccan dirham experienced a 1.1% appreciation against the U.S. dollar and a 0.8% depreciation against the euro between February 27 and March 5, as reported by Bank Al-Maghrib (BAM). Notably, no foreign exchange operations were executed during this timeframe, according to BAM’s weekly bulletin.
As of February 28, the official reserve assets were reported at MAD 367.9 billion ($37.7 billion), showing little variation from the previous week and a year-on-year increase of 2.3%. Throughout the same period, BAM’s average daily intervention volume was recorded at MAD 146.9 billion (USD 14.9 billion). This comprised 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.
On the interbank market, the average daily trading volume surged to MAD 3.8 billion ($386 million), with the interbank rate averaging 2.5%. During the auction on March 5 (to take effect March 6), BAM injected MAD 66.1 billion ($6.7 billion) in 7-day advances.
In the stock market, however, the MASI index declined by 2.7% during the period from February 27 to March 5, marking a 12.5% year-to-date performance decrease. This downturn was significantly influenced by a 2.9% fall in the banking index, an 8% dip in real estate and property development, a 4% reduction in telecommunications, and a 3.2% decrease in transportation services.
In terms of valuation, the Price-to-Earnings Ratio (PER) decreased from 24.9 to 24 week-over-week. The weekly trading volume fell to MAD 1.4 billion ($141 million) from MAD 3 billion ($304 million) the prior week, predominantly taking place on the central equities market.
The Moroccan dirham has shown mixed performance, appreciating against the U.S. dollar while depreciating against the euro. The official reserves remain stable, and BAM’s interventions in the market highlight substantial activity despite no foreign exchange operations. Conversely, the stock market has witnessed a notable decline, particularly in key sectors, contributing to a lesser valuation indicated by the decreased Price-to-Earnings Ratio.
Original Source: www.moroccoworldnews.com
