Liquidity Deficit Reduction
The liquidity deficit within the banking sector has experienced a significant reduction of 6.89% between December 31 and January 7. This shift is highlighted in a recent report by BKGR titled 'Fixed Income Weekly.'
Increase in Bank Advances
During this period, advances from Bank Al-Maghrib (BAM) rose by 1.6 billion dirhams, bringing the total to 70.9 billion dirhams. This increase reflects the central bank's ongoing efforts to manage liquidity in the financial system.
Decline in Treasury Placements
In contrast, Treasury placements have decreased, with a maximum daily outstanding amount of 4 billion dirhams, down from 25.5 billion dirhams the previous week. This decline indicates a tightening of available funds in the market.
Stabilization of Interest Rates
The weighted average rate (TMP) has stabilized at 2.25%. Additionally, the Moroccan Overnight Index Average (MONIA), which serves as the benchmark for overnight monetary transactions, has decreased to 2.242%.
Future Monetary Policy Outlook
Looking ahead, Bank Al-Maghrib is expected to scale back its interventions in the money market. The central bank plans to adjust the volume of its seven-day advances to 53.7 billion dirhams, a reduction from the previous level of 70.9 billion dirhams.