Strengthening National Reserves
In its latest weekly indicators report, Bank Al-Maghrib (BAM) announced that Morocco’s official reserve assets climbed to 496.8 billion dirhams (MMDH) as of July 17. This figure represents a steady 0.3% increase from the previous week, but more impressively, it reflects a massive 22.6% surge compared to the same period last year.
This upward trajectory in reserves is a key indicator of the country’s ability to meet international obligations and manage external shocks, providing a solid cushion for the Moroccan economy against global market volatility.
Liquidity Management and Central Bank Interventions
The central bank remains highly active in managing market liquidity to ensure smooth financial operations. During the week of July 16 to July 22, Bank Al-Maghrib’s average daily interventions totaled 150.4 MMDH. These liquidity injections are strategically distributed across several financial instruments:
- 7-day advances: 55.4 MMDH
- Long-term repos: 49.6 MMDH
- Guaranteed loans: 45.4 MMDH
A notable specific operation occurred during the tender on July 22, where the central bank injected 44.1 MMDH through 7-day advances, reinforcing the short-term liquidity available to commercial banks.
Interbank Market Performance
The interbank market, where financial institutions trade with one another, showed stable activity. The average daily trading volume stood at 3.9 MMDH, while the interbank rate settled at 2.25%. The absence of foreign exchange auction operations during this specific period suggests a period of relative stability in the currency market, as the central bank did not need to intervene directly in the exchange rate to maintain equilibrium.
Data provided by Bank Al-Maghrib weekly indicators.
