Doha-Bank al-Maghrib (BAM) announced the introduction of an Interbank forward market for foreign exchange change and overnight index swaps (OIS), which is connected to Monia (Moroccan average overnight) and starts on February 19 .
The initiative is part of BAM’s wider strategy to deepen the foreign exchange market started in 2018.
According to the central bank Press releaseThis new market will give business operators “a transparent and reliable reference for their hedging transactions against interest rates and exchange rate risks”.
The market introduces two important financial instruments. The first is the foreign exchange exchange, which BAM describes as “a transaction, in which two parties agree to exchange one currency for another and then to make an opposite exchange at a later date”.
This instrument combines a Spot truss transaction with a forward transaction with which the market participants can master their risk of foreign exchange and at the same time benefit from improved flexibility and cost forecast.
The second instrument is the OIS connected to Monia, which explains the central bank, is “a transaction in which two parties agree to the exchange in an agreed concern and the period, a fixed interest rate at the time of the transaction against a variable interest rate in the Monia -index indicated. “
This tool is primarily intended to help the financial market participants to secure themselves against short -term interest fluctuations and to result in market expectations to future short -term interest rates.
The establishment of this market was made possible by active cooperation between the market manufacture of banks and the European Bank for reconstruction and development (BERD).
The initiative aims to give the development of derivative products in Morocco new dynamics.
The start means a big leap in the modernization of the financial instruments Morocco and is expected to strengthen the depth of the national capital market. It Also aligned With the goals of the country for gradual liberalization of the dirham.
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