The Moroccan Economy in Brief: Saturday, May 07, 2022

Highway of Morocco made money in 2021:

The turnover of the National Company of Highways of Morocco (ADM) has risen by 32.5% to reach 3.2 billion dirhams (MMDH) excluding tax in 2021. The financial performance shows an improvement, in line with the recovery of motorway traffic, but is still insufficient to recover the historical level before Covid, said ADM in a statement issued after the meeting of its Board of Directors, held on Thursday under the chairmanship of the Minister of Equipment and Water. The Board of Directors approved the Company's corporate and consolidated accounts for the fiscal year ending December 31, 2021, the statement notes, which also reports a positive net result of 42 million dirhams (MDH) and a decrease in debt by 4% compared to the year 2020.

Dollar/Dirham parity at highest since April 2020:

The USD/MAD parity exceeded last week the 10 threshold for the 1st time in 2 years, before closing at 9.99, according to Attijari Global Research (AGR). As a result, the dirham depreciates against the dollar for the 5th consecutive week, indicates AGR in its note "Weekly Mad Insight-Currencies", relating to the week from April 25 to 29, 2022. At the origin, a restrictive basket effect for the dirham of +1.58% against an almost neutral liquidity effect of 0.06%, the same source said, adding that the dollar has thus appreciated by +1.64%, the largest weekly growth of the year.

A year 2021 at more than 52 MMDH for Moroccan insurers:

The national insurance and reinsurance sector has achieved a good performance in 2021 with a turnover (CA) of 52.4 billion dirhams (MMDH), an increase by 8.9%, according to the Insurance Supervisory Authority and Social Welfare (ACAPS). However, this development includes contrasting developments between the insurance activity and the reinsurance activity, specifies the ACAPS in a document on the situation of the insurance and reinsurance sector for the year 2021. Thus, after a year 2020 marked by a weak growth, the insurance activity has resumed its momentum both in life insurance and non-life insurance, notes the same source.

New car sales drop by 8.56% in Morocco at the end of April :

Sales of new cars in Morocco amounted to 53,912 units at the end of April 2022, a decrease by 8.56% compared to the same period in 2021, according to monthly statistics from the Association of Motor Vehicle Importers in Morocco (AIVAM). By segment, the number of new registrations of passenger vehicles (VP) amounted to 48,148 units, a decline by 7.74%, while that of light commercial vehicles (LCV) amounted to 5,764 units (-14.87%), specified the same source. The brand "Dacia" dominates the segment of VP, with a market share of 26.74%, or 12,874 new registrations at the end of April 2022, followed by Renault which has sold 6,938 new units (market share of 14.41%), Hyundai (5,210 units and 10.82% market share) and Peugeot (3,676 vehicles and market share of 7.63%) .

Money market: bank liquidity deficit at 84.9 MMDH :

The bank liquidity deficit widened by 1.43% to 84.9 billion dirhams (MMDH), in weekly average during the week of April 28 to May 04, according to BMCE Capital Global Research (BKGR). The 7-day advances of Bank Al-Maghrib (BAM) have, for their part, grown by 9.66 billion dirhams to reach 48.95 billion dirhams, indicates BKGR in its recent note "Fixed Income Weekly". For their part, the Treasury's investments seem to have increased slightly as indicated by the maximum daily outstanding amount which stood at 603 MMDH on April 29, against a maximum daily outstanding amount of 12.9 MMDH during the previous period, the same source adds.