Morocco's central bank injects over 161 billion dirhams in liquidity

Morocco's central bank, Bank Al-Maghrib, significantly boosted liquidity in the financial system during May, injecting over 161 billion dirhams. This move aims to ensure the smooth functioning of the banking sector and support economic activity.

The primary instruments used for liquidity injection were 7-day advances, which accounted for 61.3 billion dirhams. Additionally, the bank conducted repurchase operations over one and three months totaling 51.4 billion dirhams. Secured loans, specifically designed to support very small, small, and medium-sized enterprises (SMEs), also played a crucial role, amounting to 48.7 billion dirhams.

In parallel, the average volume of interbank operations saw a decrease of 21.9% compared to the previous month, settling at 1.7 billion dirhams in May. The average overnight interbank interest rate remained largely stable since March 2025, closely following the main interest rate and averaging 2.25%.

Regarding lending rates, research from Bank Al-Maghrib for the first quarter of 2026 indicates a decrease in the overall weighted average interest rate. It fell by 16 basis points to 4.66% compared to the preceding quarter. This reduction is attributed to lower interest rates on equipment loans, treasury loans, real estate loans, and consumer loans.