Rabat- Morocco's banking sector experienced a surge in liquidity demand in July, with weekly average needs reaching MAD 125.3 billion, up from MAD 124.1 billion in June, says a new report by Bank Al-Maghrib (BAM), the country’s central bank.
BAM said it expanded its overall liquidity injections to MAD 141.2 billion in response to this increased demand. According to BAM’s latest monthly review, the bank notably injected MAD 57 billion in 7-day advances, MAD 52.2 billion in 1- and 3-month repurchase agreements, and MAD 32 billion in long-term guaranteed loans.
On the interbank market, the average daily trading volume returned to MAD 2.6 billion in July, and the weighted average rate stood at 2.75%.
In the Treasury bills market, following the BAM Council's decision to reduce the key rate by 25 basis points to 2.75% during its meeting on June 25, 2024, rates trended downward in July.
Regarding lending rates, June data show increases of 26 basis points to 2.77% for 6-month deposits and 17 basis points to 3.20% for 1-year deposits.
By institutional sector, interest rates on corporate loans increased by 11 basis points to 5.37%, with increases of 8 basis points to 5.38% for cash flow facilities, 50 basis points to 5.69% for real estate development loans, and a decrease of 12 basis points to 4.99% for equipment loans.
Regarding interest rates applied to consumer loans, they decreased by 20 basis points to 5.89%, with declines of 19 basis points to 7.03% for consumer loans and 2 basis points to 4.79% for housing loans.
BAM said it expanded its overall liquidity injections to MAD 141.2 billion in response to this increased demand. According to BAM’s latest monthly review, the bank notably injected MAD 57 billion in 7-day advances, MAD 52.2 billion in 1- and 3-month repurchase agreements, and MAD 32 billion in long-term guaranteed loans.
On the interbank market, the average daily trading volume returned to MAD 2.6 billion in July, and the weighted average rate stood at 2.75%.
In the Treasury bills market, following the BAM Council's decision to reduce the key rate by 25 basis points to 2.75% during its meeting on June 25, 2024, rates trended downward in July.
Regarding lending rates, June data show increases of 26 basis points to 2.77% for 6-month deposits and 17 basis points to 3.20% for 1-year deposits.
By institutional sector, interest rates on corporate loans increased by 11 basis points to 5.37%, with increases of 8 basis points to 5.38% for cash flow facilities, 50 basis points to 5.69% for real estate development loans, and a decrease of 12 basis points to 4.99% for equipment loans.
Regarding interest rates applied to consumer loans, they decreased by 20 basis points to 5.89%, with declines of 19 basis points to 7.03% for consumer loans and 2 basis points to 4.79% for housing loans.
