The Moroccan dirham strengthened against the US dollar, trading at 9.87 compared to 9.95 during the period from June 3 to June 7, marking a five-month high, according to Attijari Global Research (AGR).

This improvement is primarily attributed to an expansive liquidity effect for the dirham, as highlighted by AGR in its recent “Weekly MAD Insights-Currencies” report. The liquidity effect stands at -0.62%, driven by enhanced liquidity in the Moroccan interbank exchange market.

Liquidity spreads have relaxed by 62 basis points this week, reaching -0.35%. This is due to higher export flows compared to import flows during this period, coinciding with the start of the summer season.

AGR also noted that the European Central Bank (ECB) decided to cut rates this week, but its future decisions remain uncertain amidst persistent inflation risks. These risks could be exacerbated by imported inflation resulting from diverging monetary policies between the Federal Reserve and the ECB.

In this context, analysts advise importers to hedge their dollar transactions with maturities ranging from 1 to 3 months.