Banks' cash needs reach MAD81 billion in July

Banks’ cash liquidity needs amounted to an average of MAD81 billion in July, compared to MAD 68.5 billion in the previous month, according to the Directorate of Financial Studies and Forecasts (DEPF).

The directorate clarified, in its memorandum of August’s situation, that this increase in the volume of cash circulation is related to events that were happening recently such as Eid al-Adha and the summer holidays.

As for the interbank interest rate, the directorate stated that it has remained almost stable at 1.50% since the Central Bank decided to reduce the main interest rate in June 2020, noting that it has remained, on average, at 1.50% since July 2020.

Concerning the average volume of transactions between banks, the directorate stated it decreased compared to June by 30.8% to reach MAD 3.8 billion.

Bank Al-Maghrib, in this context, its volume of cash injected increased, which was noticed the most in the forms of 7-day advances to tender requests, buy-back operations as well as support programs for financing small and medium-sized enterprises (SME).

Recently, Bank Al-Maghrib said it pumped a total of MAD97.3 billion, during the period from August 4 to 11.

This total includes MAD40 billion in the form of advances for 7-days to tender requests, MAD29.8 billion in the form of buy-back operations, and MAD27.5 billion in the form of programs to support the financing of SME.

However, the COVID-19 pandemic context has led to a remarkable increase in the Treasury debt level, according to a report on the government’s policy during the 2017-2021 period.

The Treasury showed a budget deficit of MAD 27.4 billion at the end of June 2021, against a deficit of MAD 28.7 billion in the past year, according to the General Treasury of the Kingdom (TGR).