Liquidity on Morocco’s money market continues its upward trend, reaching new highs by the end of Q3 2024, according to Attijari Global Research’s recent “Weekly Hebdo Taux – Fixed Income” report covering October 25-31. The report reveals a substantial increase in both cash circulation and liquid assets, highlighting a notable 10.1% rise in cash circulation, now surpassing 425 billion dirhams (MAD), alongside a 13% year-over-year boost in liquid placements, totaling 944 billion dirhams.
Responding to these heightened liquidity conditions, Bank Al-Maghrib has slightly reduced its weekly seven-day advances, bringing them down from 970 million dirhams to 61.6 billion dirhams. Consequently, the weighted average rate (TMP) aligns with the main policy rate at 2.75%. Meanwhile, the Moroccan Overnight Index Average (MONIA)—Morocco’s daily money market reference rate, calculated based on Treasury-backed repurchase transactions—rose by one basis point to 2.70%.
Bank Al-Maghrib’s overall intervention, including its primary operations, totaled 127.1 billion dirhams, a stable figure from the previous week. This includes 65.4 billion dirhams allocated to guaranteed loans and long-term repurchase agreements, which have remained consistent week-over-week.
However, the Treasury’s rate of liquidity placements in the money market slowed this week. Treasury placements, including unsecured transactions and repurchase agreements, fell sharply from 18 billion dirhams to 10.6 billion dirhams by week’s end. This reduction suggests a measured approach in response to the current liquidity conditions and the evolving landscape of Morocco’s monetary market.
These trends reflect Morocco’s ongoing adjustments to maintain monetary stability amidst fluctuating liquidity, indicating both resilience and adaptability within its financial system.
