Morocco’s Bank Al-Maghrib Wednesday announced the introduction of a term interbank market for foreign exchange swaps and overnight index swaps (OIS) linked to the Moroccan Overnight Index Average (MONIA), with operations starting on February 19.
This initiative is part of BAM’s broader strategy to deepen the foreign exchange market, a process that began in 2018.
According to a central bank statement, the new market will provide economic operators with “a transparent and reliable benchmark for hedging against interest rate and exchange rate risks.”
The market features two key financial instruments:
Foreign Exchange Swap – A transaction in which two parties agree to exchange one currency for another, with a reverse exchange set for a later date. This combines a spot foreign exchange transaction with a forward contract, helping market participants manage exchange rate risks while benefiting from greater flexibility and cost predictability.
OIS Linked to MONIA – A transaction in which two parties agree to exchange, over an agreed notional amount and period, a fixed interest rate determined at the time of the transaction against a variable rate indexed to MONIA. This instrument is designed to help financial market participants hedge against short-term interest rate fluctuations and derive market expectations for future short-term rates.
The creation of this market was made possible through active collaboration between market-making banks and the European Bank for Reconstruction and Development (EBRD).
This launch represents a significant step in modernising Morocco’s financial instruments and is expected to enhance the depth of the national capital market. It also aligns with the country’s objectives for the gradual liberalisation of the dirham.
MK/te/sf/lb/as/APA