Moroccan Dirham strengthens against Dollar in June trading

Morocco’s dirham appreciated 1.3 percent against the U.S. dollar while weakening 0.7 percent versus the euro between May and June 2025,according to Bank Al-Maghrib’s latest monthly economic review,reflecting broader currency market dynamics and the euro’s strength.

The central bank attributed these movements partly to the euro’s 2.1 percent appreciation against the dollar during the same period. Notably,Bank Al-Maghrib has not conducted foreign exchange auctions since December 2021,allowing market forces to drive currency valuations within its managed float system.

Interbank foreign exchange trading volumes showed significant contraction,dropping to 30.1 billion dirhams in May 2025,a sharp 42.7 percent decline compared to the previous year. This reduction suggests decreased speculative activity or changing market dynamics in Morocco’s foreign exchange markets.

Bank-client transactions revealed mixed patterns in the spot and forward markets. Spot purchases by banks from clients totaled 37.8 billion dirhams in May,slightly down from 38.4 billion dirhams a year earlier. Forward purchases dropped more substantially to 15.7 billion dirhams from 19.5 billion dirhams,indicating reduced hedging activity by businesses.

On the sales side,banks sold 34.2 billion dirhams in spot transactions to clients,compared to 36.3 billion dirhams previously. Forward sales declined to 1.8 billion dirhams from 2.7 billion dirhams a year ago,suggesting limited demand for forward cover among importers.

These currency movements and trading patterns reflect Morocco’s evolving economic position,with the dirham’s performance influenced by global currency trends,domestic economic conditions,and the country’s managed exchange rate policy that balances stability with market flexibility.