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Decline in current transactions in Q1 2020 (Exchange Office)


The volume of current transactions recorded a decrease of 10.7 billion dirhams (MMDH) in the first quarter of 2020, under the effect of the health crisis of Covid-19, standing at 251.8 MMDH against 262.5 MMDH during the same period in 2019 and 255.3 MMDH in 2018.

This decline in current transactions occurs for the first time due to the simultaneous decline in current receipts (-6.8 MMDH) and current expenses (-3.9 MMDH), says the Exchange Office in a press release on the results foreign trade at the end of March 2020.

Similarly, the balance of payments results for the first quarter of 2020 show an increase in the deficit in the current account of 42% to -9.8 billion dirhams against -6.9 billion dirhams March 2019.

This evolution is explained as much by the worsening of the deficits for the exchange of goods (-3.1 MMDH) and primary income (-0.4 MMDH) as by the fall in the surplus of secondary income (-0 , 5 MMDH) and this, despite the improvement in the services surplus to the tune of 1.1 MMDH, adds the Exchange Office.

In terms of international investments, the overall international position, which reflects the economic situation of the Moroccan economy vis-à-vis the rest of the world, highlights a net debt position of 728.3 MMDH at the end of March 2020, against -765 , 5 MMDH at the end of December 2019 thus recording a reduction in its balance of 37.1 MMDH.

This situation results from the fall in outstanding financial commitments (-18.9 MMDH) and the rise in outstanding financial assets (+18.2 MMDH), specifies the same source.

The drop in financial commitments is a consequence of the drop in direct investment outstandings by 26.5 billion dirhams and to a lesser extent the drop in portfolio investment outstandings (-3.2 billion dirhams), explains the Office, noting that on the other hand, the outstanding amount of the “other investments” component increased by 10.4 billion dirhams.

For its part, the increase in financial assets is mainly due to the increase of 7.8 billion dirhams in reserve assets, +6.8 billion dirhams of the outstanding amount of the “other investments” component and +2.3 billion dirhams outstandings of Moroccan direct investments abroad.

Merchandise trade is marked by a decline, compared to the same period of 2019, both at the level of imports and at the level of exports.

For their part, imports recorded a decrease of 4.3% or -5.3 MMDH in the 1st quarter of 2020, passing to 118.4 MMDH against 123.7 MMDH for the same period of 2019.

Similarly, exports decreased by 10.5% or -8 MMDH reaching a value of 68.3 MMDH against 76.3 MMDH a year earlier.

Thus, the trade deficit reached 50.1 MMDH against 47.3 MMDH and the coverage rate is 57.7% against 61.7% for the first quarter of 2019.

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