In the latest economic developments, the Moroccan dirham has shown a mixed performance in the foreign exchange market. Between November and December 2024, the dirham appreciated by 0.8% against the euro but depreciated by 0.6% against the US dollar. This fluctuation is attributed to various economic factors, including improved liquidity spreads, which have reached -1.78% due to increased export flows [5c5d5720].
Bank Al-Maghrib (BAM) has reported that trading activity on the interbank market fell to MAD 40.2 billion ($4.05 billion), marking a significant 41.4% decrease from 2023. Spot purchases totaled MAD 32.9 billion ($3.32 billion), while forward transactions reached MAD 16.1 billion ($1.62 billion). Notably, BAM has not conducted foreign exchange auctions since December 2021, indicating a shift in its market strategy [5c5d5720].
In terms of tourism, Morocco recorded a remarkable 17.4 million tourists in 2024, contributing positively to the economy and potentially influencing currency stability. The Moroccan dirham's performance reflects the broader economic context, including the impact of tourism and export activities on currency valuation [5c5d5720].
In a broader context, the Moroccan dirham had previously shown resilience against the euro but faced depreciation against the dollar, with reports indicating a 0.5% decline against the dollar and a 0.6% decline against the euro between December 26 and 31, 2024. BAM's official reserves stood at MAD 375.2 billion ($37 billion) as of December 27, 2024, marking a 4.6% increase year-over-year. The bank has been injecting liquidity into the market, averaging MAD 156.6 billion ($15.5 billion) daily [56e845d5].
Overall, while the Moroccan dirham gains ground against the euro, its depreciation against the US dollar highlights the complexities of the current economic landscape, influenced by factors such as export flows, tourism, and interbank trading activities.