Increasing Liquidity Needs and Falling Interest Rates Reflect the Dynamics of Financial Markets in Morocco
Liquidity needs among Moroccan banks reached an average of 114 billion dirhams during June, compared to 108.7 billion dirhams in the previous month, as reported by Bank Al-Maghrib in its monthly publication on economic, monetary, and financial conditions.
The central bank increased its interventions to 129 billion dirhams, which included 50.5 billion dirhams as 7-day advances, 44.6 billion dirhams through repurchase agreements, and 33.9 billion dirhams in long-term guaranteed loans.
Meanwhile, the interbank market experienced a noticeable recovery, with the average daily transaction volume rising to 4.4 billion dirhams, while the weighted average interest rate stood at 2.25 percent. In the treasury bond market, rates declined in both primary and secondary markets during the same month.
Interest rates on deposits also saw decreases in May, dropping by 36 basis points to 2.36 percent for 6-month deposits and 3 basis points to 2.7 percent for one-year deposits. The minimum interest rate for savings accounts was set at 1.91 percent for the second quarter of 2025, marking a 30 basis point decrease compared to the previous quarter.
Conversely, the interest rates for loans experienced a slight decline during the first quarter of 2025, with the overall average interest rate falling by 10 basis points to 4.98 percent. Interest rates on loans to non-financial corporations decreased by 16 basis points to 4.84 percent, while treasury facilities dropped by 26 basis points to 4.73 percent, whereas rates for equipment and real estate recovery loans increased to 5.14 percent and 5.49 percent, respectively.
The interest applied to large corporations decreased by 122 basis points to 4.96 percent, while it dropped by 9 basis points to 5.61 percent for micro, small, and medium enterprises.
On the other hand, interest rates applied to personal loans increased by 17 basis points to 5.96 percent, reflecting a rise in consumer loan rates by 14 basis points to 7.13 percent, while housing loans remained relatively stable at 4.74 percent.
