Bank Al-Maghrib (BAM) has significantly increased its monetary market interventions for the week of May 31 to June 6, injecting an additional 5.2 billion dirhams, bringing the total to 127 billion dirhams. This boost in liquidity was achieved through both short-term and long-term financing operations, as reported by Attijari Global Research (AGR). Specifically, the seven-day advances surged to 42.6 billion dirhams from 37.4 billion dirhams the previous week, while long-term interventions remained steady at 84.4 billion dirhams.

Stability in the monetary market amid central bank’s upcoming policy meeting

The monetary market remains stable as the Central Bank gears up for its second policy meeting of 2024. AGR noted that the European Central Bank (ECB) has just enacted its first rate cut since July 2022, a significant move in the global financial landscape.

Domestically, interbank rates are holding steady at the benchmark rate of 3%. However, the Moroccan Overnight Index Average (MONIA) has seen a slight increase, rising by 3 basis points to 2.96% from 2.93% the previous week.

Treasury maintains high activity in the monetary market despite slowdown

Meanwhile, the Treasury continues to actively place funds in the monetary market, although at a slightly reduced pace. The average weekly balance of cash injections and repurchase agreements stands at 17.4 billion dirhams, down from 22.7 billion dirhams the week before.