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The Moroccan Economy in Brief: Thursday, August 4, 2022

Phosphates and derivatives: Moroccan exports increased by more than 84% at the end of June 2022:

Sales of phosphates and derivatives rose by 84.3% to reach more than 57.46 billion dirhams (MMDH) at the end of June 2022, according to the Exchange Office. This development follows, mainly, the increase in sales of natural and chemical fertilizers (+19.72 MMDH) due to the price effect which more than doubled (8,656 DH/T at the end of June 2022 against only 3,671 DH/T at the end of June 2021), explains the Office, which has just published its monthly external trade indicators for the month of June, noting that, on the other hand, the quantities exported fell by -5.1%. Indeed, the Agency indicates that merchandise exports were 215.07 MMDH at the end of June 2022 compared to 152.35 MMDH a year earlier, an increase by 41.2% or +62.72 MMDH, adding that this increase concerns all sectors, led by phosphates and derivatives, the automotive sector, agriculture and agri-food, and textile and leather.

CIH Bank successfully closes an 800 million dirham bond issue:

CIH Bank has announced that it has successfully closed a perpetual subordinated bond issue, by private placement with qualified investors, for a total amount of 800 million dirhams (MDH). The transaction was structured in a single tranche with an annual, perpetual rate reset, not listed on the Casablanca Stock Exchange, dematerialised by recording in accounts with authorised financial intermediaries and admitted to the operations of the central depositary (Maroclear), indicates a statement from the bank.

Unemployment: The rate drops to 11.2% in Morocco:

The unemployment rate in Morocco rose from 12.8% to 11.2% (-1.6 points) between the second quarters of 2021 and 2022, according to the High Commission for Planning (HCP). The rate rose from 18.2% to 15.5% in urban areas (-2.7 points) and from 4.8% to 4.2% in rural areas (-0.6 points), according to the HCP, which has just published a briefing note on the labour market situation in the second quarter of 2022 (Q2-2022). The fall in unemployment affected all categories of the population, notes the same source. It fell by 2 percentage points for men, from 11.9% to 9.9%, and by 0.8 percentage points for women, from 15.9% to 15.1%. It also recorded a decrease of 2.4 percentage points among graduates, from 20.4% to 18%, and of 1.4 percentage points among non graduates, from 5% to 3.6%.

External debt: More than 338 billion dirhams in the first quarter:

The stock of external public debt stood at 388.1 billion dirhams at the end of March 2022, of which 209.7 billion dirhams for the Treasury and 178.4 billion dirhams for other public borrowers, according to the Treasury and External Finance Directorate (DTFE). In the first three months of 2022, draws on external public debt totalled 3.9 billion dirhams, the DTFE states in its statistical bulletin on external public debt at the end of March 2022.

AGR raises its USD/MAD forecast:

Attijari Global Research (AGR) has revised upwards its USD/MAD short-term forecast to 1.2 and 3 months, taking into account the EUR/USD parity forecast and liquidity conditions on the foreign exchange market. Compared to its current spot price, the dirham would appreciate against the dollar over a 3-month horizon, says AGR in its "Weekly MAD Insights - Currencies" rating for the week of July 25 to 29. We anticipate significant foreign exchange flows in the form of tourist receipts, following the +Marhaba+ operation", AGR analysts point out.