The USD/MAD pair dropped by 0.56% between August 12 and 16, reaching 9.77, its lowest in 12 months, according to Attijari Global Research (AGR). This decline is driven by a double negative effect: a drop in the dollar against the euro (-0.37%) and easing liquidity conditions in the foreign exchange market (-0.19%). The dirham remains supported by remittances from Moroccans abroad and strong summer tourism revenues. AGR expects a monetary easing by the U.S. Federal Reserve in September, which is likely to fuel short-term currency volatility. AGR advises importers to limit their hedging horizon to under three months.
