The money supply (M3 aggregate) increased by 3.7% in the first quarter of 2024, after 5.2% a quarter earlier, according to the recent quarterly report from Bank Al-Maghrib (BAM) on monetary policy.
This development reflects an accentuation of the decline in the securities of Collective Investment Organizations in Transferable Securities (UCITS) from 2% to 15.7% and a deceleration in the growth of fiduciary circulation to 10.2% after 11.4%, specifies the Central Bank.
The rate of increase in demand deposits returned from 7.7% to 7.1%, linked in particular to the slowdown in the increase in household deposits to 5.8% after 6.4%, the same company reported. source.
Concerning term deposits, they experienced an attenuation of their decline from 8.8% to 7.2%, reflecting in particular a drop of 12.3% in those of private companies after that of 15.3% a quarter previously. . Likewise, foreign currency deposits recorded a decline of 0.5% after that of 15.5%
By main counterparts, the slowdown in the growth of the money supply reflects the decline in net claims on the central government of 5.4% after an increase of 1.8%, while the rate of increase in bank credit increased from 5.2% to 6% and that of official reserve assets from 4.6% to 5%.
In particular, the growth rate of credit to the non-financial sector slowed from 2.8% to 2.6%, as a result of the slowdown in increases in loans granted to public enterprises from 31.1% to 22.7% and in loans to households from 1.9% to 1.2%. As for loans to private enterprises, they increased by 0.4% after a decline of 0.3% recorded in the previous quarter.
The deceleration in the growth of credit to public enterprises reflects in particular the slowdown in the rate of growth of liquidity facilities from 68.6% to 49.7%.
As for loans to households, loans to individual entrepreneurs fell by 5.6% after an increase of 2.1%, while the increase in loans to individuals remained stable at 1.9%, with a deceleration from 1.9% to 1.5% for housing loans and a virtual stagnation at 0.5% in the growth of consumer loans.
As for the evolution of loans to private companies, it results from the attenuation of the drop in liquidity facilities from 10.2% to 7.6%, while equipment credit increased by 4. 6% after 5.5%.
By sector of activity, data relating to the first quarter of 2024 indicate an accentuation of the declines in credits to “Miscellaneous manufacturing industries” from 5.8% to 7.1% and to “Food and tobacco industries” from 2.4% to 5%.
Conversely, competitions for companies in the “Building and public works” and “electricity, gas and water” sectors improved by 21.7% and 26.9% respectively.
