Bank Al-Maghrib (BKAM) has released its latest report on monetary policy, revealing that the growth rate of Morocco’s M3 aggregate, representing the money supply, has surged to 8% in 2022. The Central Bank states that this development is largely due to a net increase in currency growth from 6.5% in 2021 to 10.8%, as well as a rise in demand deposits with banks to 8.9% after 7.6%.
The evolution of the money supply is reflected by a 10.3% to 14.4% acceleration in the growth rate of net claims on the central government, and 5.1% to 6.7% growth in bank credit. Meanwhile, official reserve assets’ growth rate has returned to 4.9% from 8.2%, according to the report.
In the fourth quarter of 2022, the M3 aggregate saw a 6.6% increase following a rise in the growth pace of cash from 7.1% to 9%.
