Moroccan dirham declines for fifth consecutive week against euro and dollar

The Moroccan dirham has experienced a continuous decline against major foreign currencies, marking its fifth consecutive week of depreciation. According to data from the central bank, Bank Al-Maghrib, the dirham fell 0.5% against the euro and 0.9% against the US dollar during the week of September 24 to September 30.

Over the past five weeks, the dirham has lost approximately 2.06% of its value against the euro. Since late August, the euro has strengthened against the dirham by about 2.9%. The US dollar has also seen significant gains, rising approximately 2.8% against the dirham since September 23.

Morocco utilizes a managed exchange rate system where the dirham is permitted to fluctuate within a 5% band around a central rate. This rate is determined by a currency basket consisting of 60% euro and 40% US dollar. The recent movements appear to reflect market activity within this permitted band, as Bank Al-Maghrib did not conduct any currency auctions during the final week of September.