Banking Liquidity Deficit Widens by 21.9% in Morocco
According to BMCE Capital Global Research (BKGR), this increase in the deficit comes as Bank Al-Maghrib (BAM) reduced its 7-day advances by MAD 2.4 billion, bringing the total to MAD 49.2 billion.
BKGR's recent 'Fixed Income Weekly' report highlights this development, which reflects tightening conditions in the money market.
At the same time, treasury placements have surged. The daily maximum outstanding balance reached MAD 51.1 billion, a sharp rise from the previous period's MAD 8.2 billion.
On interest rates, the Weighted Average Rate (WAM) has dropped to 2.25%, while the Moroccan Overnight Index Average (MONIA) has seen a slight dip, standing at 2.231%.
Looking forward, BKGR anticipates that BAM will slow the pace of its market interventions. The central bank is expected to reduce its 7-day advances to MAD 51.1 billion, down from MAD 66.46 billion in prior weeks.
Morocco's banking liquidity deficit improved by 8.26% in January, reaching MAD 136.8 billion ($13.4 billion).
As for bond market projections, the modest issuance observed this week confirms the relative comfort of the treasury, which continues to benefit from its successful international bond issue. That issuance came just days before global markets were shaken by a new wave of tariffs imposed by Donald Trump, an event that could have affected Morocco's access to financing.
The evolving international environment, which now appears likely to accelerate the pace at which major central banks lower key interest rates, may ultimately support a broader downward trend in bond yields.
Meanwhile, the recent widening of the liquidity deficit notes ongoing pressure in Morocco's financial system, even as the treasury maintains a stable position. This means that shifting international dynamics and the potential for lower global rates could play a stabilizing role in the months ahead. Tags: BAMliquidity deficitMorocco economyMorocco liquidity deficit
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