Morocco’s central bank, Bank Al-Maghrib (BAM), announced in a press release on Monday that beginning January 2, 2024, it is adopting a new methodology for calculating benchmark exchange rates for the Moroccan dirham (MAD).
The change, part of a series of reforms designed to boost the interbank foreign exchange market and improve its liquidity, is intended to more accurately reflect liquidity in the foreign exchange market, according to BAM. The updated methodology, developed in collaboration with market-making banks, is based on recommendations from the Financial Stability Board and principles established by the International Organization of Securities Commissions (IOSCO).
Under the new approach, benchmark exchange rates will be determined based on market makers’ interbank transactions on Morocco’s electronic trading platform from 8:30 a.m. to 3:30 p.m., replacing the fixed interbank quotes displayed from 12:12 p.m. to 12:17 p.m.
Daily benchmark exchange rates for the MAD will now be published at 4:15 p.m., following the closure of the interbank foreign exchange market, instead of the current 12:30 p.m. schedule.
MAD benchmark exchange rates are primarily used for the revaluation of assets and liabilities denominated in foreign currencies and are not intended to be directly or indirectly used in conducting foreign exchange operations.