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The Moroccan Economy in Brief: Tuesday, January 25, 2022

 

Drâa-Tafilalet: The achievements of the INDH on preschool :

The National Initiative for Human Development (INDH) has helped to achieve 978 units of preschool in the region of Drâa-Tafilalet during the period from 2019 to 2021, according to data from the Regional Coordination of Human Development under the Wilaya of the region. A total of 109 communes in the region have supported these units. The total number of preschool units built in the region of Drâa-Tafilalet during the period from 2019 to 2021 is 2,256, including 402 in Errachidia, 591 in Ouarzazate, 576 in Tinghir, 407 in Zagora, 280 in Midelt. Furthermore, 42,295 children are in preschool in the region of Drâa-Tafilalet, including 22,109 boys and 20,285 girls.

The Treasury invests 1.5 billion dirhams of cash surpluses :

On Friday, the Directorate of Treasury and External Finance (DTFE) initiated three operations of investment of cash surpluses of a total amount of 1.5 billion dirhams (MMDH). It is about an investment with repo, subscribed on six days and concerning 700 million dirhams (MDH) at the weighted average rate of 1,22%, declares the DTFE in a statement. The second investment also with repo, is subscribed on three days and concerns 600 MDH at the rate of 1,09%, the same source adds. The third placement is for an amount of 200 MDH subscribed over three days at a rate of 1.50%.

Mutandis SCA: Approval of the AMMC for the rise in capital:

On Friday, the Moroccan Capital Market Authority (AMMC) ratified the prospectus relating to the increase in capital of Mutandis SCA, by issuing new shares with suppression of the subscription preferential right. The transaction concerns a global amount of 300 million dirhams (MDH) (issue premium included), while the share price is fixed at 240 dirhams, indicates Mutandis in a press release, thus mentioning that the subscription period is scheduled from January 31st to February 4th, 2022 at 3.30 pm included. Besides, the prospectus aimed by the AMMC is made up of the reference document relating to the financial year 2020 registered on July 16th, 2021 under the reference EN/EM/010/2021, of the update n°1 of the reference document related to the financial year 2020 registered on January 18th, 2022 under the reference EN/EM/002/2022 and of the operation note.

Crypto-currency value plummets on Wall Street:

The prices of crypto-currencies witnessed their value plummet on Friday on Wall Street, undoing hundreds of billions of gains in the market. CNBC reported that $150 billion was lost as the prices of major crypto-currencies tumbled. Bitcoin, the world's most valuable digital currency, has dropped more than 15 % since the beginning of the year. In November, it was trading at a record low of $68,990. Its peers have seen similarly unfavorable developments lately. The second most expensive cryptocurrency, Ethereum has declined nearly 8% in the past 24 hours and is currently trading at around $2,895, according to CoinDesk. Ethereum has lost nearly 20% of its value since the beginning of January. Investors have been worried about digital currencies and other riskier assets since the U.S. Federal Reserve indicated it may end economic stimulus more aggressively than expected .

Liquidity: BAM meets the banking demand:

As of January 14-20, 2022, Bank Al-Maghrib (BAM) has satisfied all bank demand for liquidity, according to Attijari Global Research (AGR). "While satisfying the totality of the banking demand, BAM maintains stable its weekly interventions through its main operations," according to AGR in its recent note "Weekly Hebdo Taux - Fixed Income", which states that the Central Bank's liquidity injections reached 74.3 billion dirhams (MMDH). The 7-day advances rose in one week from 3.7 billion dirhams to 34.1 billion dirhams, pointed out the note, adding that a decline of the same amount was recorded in secured loans. During this week, 5 old lines of guaranteed loans totaling 4.2 billion dirhams expired and a new line for an amount of 582 million dirhams (MDH) was established.