Moroccan Dirham Edges Higher Against US Dollars
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- 04 Apr 2022
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The Moroccan dirham appreciated by 0.48% against the US Dollars, and depreciated by 0.69% against the Euro over the March 24-30 week.
The US dollar has picked up value against the Moroccan Dirham in the past month, reaching MAD 10.01 per $1 on March 8 before gradually declining again.
The trend reflects a strong recovery for the US dollar following the Federal Reserve’s decision to increase interest rates.
Raising interest rates is the standard procedure for central banks around the world to curb rampant inflation.
Rabat - The Moroccan dirham appreciated by 0.48% against the US Dollars, and depreciated by 0.69% against the Euro over the March 24-30 week.
The US dollar has picked up value against the Moroccan Dirham in the past month, reaching MAD 10.01 per $1 on March 8 before gradually declining again.
The trend reflects a strong recovery for the US dollar following the Federal Reserve’s decision to increase interest rates.
Raising interest rates is the standard procedure for central banks around the world to curb rampant inflation.
In February, the inflation rate reached 7.9% in the US, the highest level in over two decades. In response, the US central bank, the Federal Reserve, approved a 0.25% increase in interest rates, the first since 2018.
Inflation rates reached record high levels worldwide due to the economic fallout of the COVID-19 crisis. Governments around the world ramped up spending to aid businesses and provide economic relief packages.
Governments investing in vaccine development and vaccination campaigns have done little to improve the trend.
While central banks around the world are now tightening monetary policies by hiking interest rates, Morocco’s central bank, Bank Al-Maghrib (BAM), has announced that the country will keep interest rates benchmarked at 1.5%. Read More...
