Dollar/Dirham Exchange Rate Declines

The US dollar exchange rate against the Moroccan dirham experienced a notable decrease during the last week of November 2024, according to a report issued by Attijari Global Research (AGR). The exchange rate dropped by 0.57%, moving from 10.06 dirhams per dollar to 10 dirhams, after remaining above 10 dirhams throughout the week.

The report attributes this decline to two main factors:

1. Currency basket effect: The rise in the euro’s value during the week led to a negative impact of 0.77% on the dollar/dirham exchange rate.
2. Market effect: This was positive at 0.2%, as the liquidity spreads for the dirham narrowed to -0.84%, supported by the good performance of export flows.

These spreads are expected to see a slight increase over the next three months.

The report also pointed to external factors that affected dollar stability, including:

• The election of Donald Trump as President of the United States.
• Escalating tensions between Russia and Ukraine.

Given these circumstances and the prevailing uncertainty in foreign exchange markets, AGR analysts advise traders to cover their operations over a 3-month horizon.

It’s worth noting that the dollar/dirham exchange rate has experienced fluctuations in recent months, reaching its highest level at 10.075 dirhams per dollar on November 22, 2024, before retreating to current levels.