Bank Al-Maghrib (BAM) is launching an interbank futures market for foreign exchange swaps and overnight interest rate swaps (OIS) on February 19, 2025, indexed to the Moroccan Overnight Index Average (MONIA). This move is part of an ongoing effort to deepen Morocco’s foreign exchange market, which began in 2018.
A foreign exchange swap is an agreement where two parties exchange currencies and agree to reverse the transaction at a later date. It combines spot and forward exchange transactions, allowing market participants to manage foreign exchange risk with greater flexibility and cost predictability.
The OIS on MONIA involves a fixed interest rate exchange against a variable interest rate indexed to the MONIA. This instrument is primarily used by financial market participants to hedge against short-term interest rate fluctuations and to derive market expectations for future rate changes.
The new interbank futures market will provide economic operators with a transparent, reliable reference for hedging against exchange rate and interest rate risks, while boosting the development of derivative products in Morocco.
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