The Moroccan Treasury has significantly increased its domestic market issuances, reaching 60.6 billion dirhams (MMDH) in the third quarter of 2024, compared to 39.4 billion dirhams in the previous quarter. This sharp rise is highlighted in the latest monetary policy report from Bank Al-Maghrib (BAM).
The surge was driven by a preference for long-term maturities, which accounted for 61% of the total issuances. Medium-term bonds represented 30%, while short-term bonds made up a modest 9%, according to BAM. Despite repayments amounting to 36.1 billion dirhams during the period, the outstanding Treasury bonds grew by 8.3% quarter-on-quarter, reaching a substantial 757.4 billion dirhams.
However, BAM’s report also noted a slowdown in October’s issuances, which totaled 9 billion dirhams compared to 13.6 billion dirhams in September. This decline came alongside a shift in maturity preferences: 49% of issuances were medium-term, 47% long-term, and only 4% short-term.
These fluctuations reflect a strategic approach by the Treasury to address financing requirements while optimizing long-term debt costs. The emphasis on long-term maturities underscores a deliberate move to secure stable financing amid global economic uncertainties.
With outstanding Treasury bonds nearing 760 billion dirhams, upcoming BAM reports are expected to shed light on evolving issuance strategies and their implications for Morocco’s macroeconomic balance.
The report underscores the government’s prudent debt management—a critical factor in Morocco’s economic trajectory. Ensuring a balance between financing needs and sustainable debt practices remains a top priority in navigating the nation’s financial landscape.
