MAD World

We continue to see MAD weakness against the dollar and strength against the euro, based on our bullish stance towards the US unit versus the euro. There is a risk of devaluation versus the single European unit, on grounds of reduced export competitiveness versus Morocco's main trading partner, the EU, and MAD10.8000/EUR is a level at which the central bank may start to get nervous. However, barring intervention, a sustained dollar break through US$1.1900/EUR would prompt corresponding weakness in the Moroccan unit against the greenback and strength against the

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