INTERNATIONAL HIGHLIGHTS
The Dollar appreciated against the Dirham this week to 10.14 against 10.02, i.e. a variation of +1.23%. We recall that the previous week's quote for this exchange rate dates from Tuesday.
This development is mainly explained by a positive basket effect of +1.20% related to the strengthening of the Dollar internationally, combined with a positive liquidity effect of +0.03% in favor of the Dollar.
Liquidity spreads tighten slightly by +3 BPS this week,
to a level of 1.10%. This is due to import flows slightly more dominant than export flows this week.
Control of inflation in the United States remains uncertain and tensions in the Middle East are fueling risk aversion and currency markets volatility. This particularly concerns the Dollar which benefits from its safe haven status.
We recommend importers to hedge their operations in Dollars over 3-month horizons.
