In the first week of October, Morocco's dirham experienced a notable depreciation against both the euro and the US dollar, as reported by Bank Al-Maghrib (BAM). Specifically, the dirham weakened by 1.47% against the euro and by 2.95% against the US dollar between October 1 and October 7. This decline highlights ongoing challenges within the Moroccan economy, particularly in the foreign exchange market. During this same period, the central bank indicated that there were no foreign exchange auction operations conducted.

Amidst these fluctuations, Morocco's official reserve assets saw an increase, reaching MAD 515.7 billion (approximately $52.6 billion) as of October 2. This figure reflects a 1.8% rise from the previous week and marks a significant 23% increase compared to the same period last year. The central bank has been actively managing liquidity, providing an average of MAD 155.1 billion ($15.8 billion) daily through various intervention operations. These operations included MAD 59.7 billion ($6.09 billion) in seven-day advances, MAD 44.9 billion ($4.58 billion) in longer-term repurchase agreements, and MAD 50.7 billion ($5.17 billion) in guaranteed loans. On the interbank market, the average daily trading volume reached MAD 3.4 billion ($346.8 million), with the interbank interest rate standing at 2.25%.

Stock Market Struggles Amid Economic Pressures

The Casablanca Stock Exchange also faced significant challenges during the same week, with the Moroccan All Shares Index (MASI) dropping 4.2% between October 1 and October 7. This decline brought the index's total losses for the year 2026 to 9.8%, as every sector index ended the week in the red. The real estate investment and development index suffered the most substantial decline, plummeting by 9.1%. Following closely was the mining index, which fell by 5.9%, while the transportation services sector saw a decrease of 5.3%. Additionally, the building and construction materials index experienced a loss of 4.7%, and the banking sector index declined by 1.9%. Trading activity diminished during this period as well, with the total transaction volume decreasing to MAD 1.1 billion ($112.2 million) from MAD 1.9 billion ($193.8 million) the previous week, indicating a slowdown in market engagement.

As reported by moroccoworldnews.com.