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Money supply up 6.7% in Q3-2024

The M3 aggregate, which corresponds to the broad money supply, showed an increase of 6.7% in the third quarter (Q3) 2024, after 4.6% a quarter earlier, according to Bank Al-Maghrib (BAM).

This development reflects the acceleration in the rate of increase in demand deposits with banks from 7.5% to 10.2%, linked in particular to the increase in those of households from 8.3% after 7.3%, explains BAM in its report on monetary policy, published at the end of the fourth and final quarterly meeting of 2024 of its Council.

Likewise, term deposits increased by 1.5% after recording a decline of 4.6%, reflecting the increase in those of private companies of 24.7% after a decline of 26.3%, continues the same source. In the same direction, the increase in currency circulation increased from 8.4% to 10.1%, the securities of monetary undertakings for collective investment in transferable securities (UCITS) experienced an attenuation of their decline by 17.1%. to 16.4% and foreign currency deposits increased by 8% after an increase of 6.7%.

By main counterparts, the acceleration in the money supply is the result of an improvement in bank credit of 4.9% after 3.2% a quarter previously, an increase in net claims on the central administration of 8. 4% after 6.1%, and a deceleration in the rate of growth of official reserve assets from 5.8% to 3.6%.

The rate of growth of credit to the non-financial sector accelerated, from one quarter to the next, from 1.2% to 3.3%, the result of an increase in loans to private companies of 2% after a decrease of 0.7%, an increase of 14.9% in those to public companies after 5.5% and a virtual stability in the increase in assistance granted to households at 1.1%. The evolution of credit to private companies notably reflects an increase of 1.6% in liquidity facilities compared to a decline of 7.1% in the previous quarter, and accelerations from 1.1% to 5.9% for loans to real estate development and from 8.4% to 9.4% for those in equipment. As for assistance to public companies, the improvement in their rate from 5.5% to 14.9% essentially reflects that of cash flow facilities from 35.2% to 57%, while equipment loans showed an increase. drop of 8.3% after that of 7.3%. Concerning household loans, their evolution is the result of a quasi-stability in the rate of progression of loans to individuals at 1.9%, with an acceleration from 0.6% to 1.2% for consumer loans and stagnation at 1.3% for those in housing, and an accentuation of the decline in loans to individual entrepreneurs from 6.2% to 7.2%. By branch of activity, data relating to Q3 indicate improvements in loans granted to companies in the “Building and public works” and “Extractive industries” sectors of 22.4% and 20.7% respectively. Conversely, assistance in the “Trade, automobile repairs and household items” and “Miscellaneous manufacturing industries” branches recorded respective declines of 5.9% and 7.6%.

Regarding overdue debts, they increased by 3.4% and their ratio to outstanding bank credit stood at 8.6%. They increased by 1% for private non-financial companies and by 6.9% for households with respective ratios of 12.6% and 10.7%. As for credits granted to the non-financial sector by financial companies other than banks, they increased by 0.6% in Q3. This development is the result of increases of 6.9% in loans granted by financing companies and of 3.9% in those granted by microcredit associations, as well as a drop of 41.9% in those of banks. offshore. The latest available data for October indicate annual bank credit growth of 3.6%, reflecting increases of 2.4% in loans to the non-financial sector and 11.3% in loans to financial companies. . Concerning the aggregates of liquid investments, they increased by 13% after 14.7% a quarter previously with slowdowns in the growth rates of Treasury bills from 7.4% to 5.6%, of bond UCITS securities. from 27.4% to 23.9%.

On the other hand, the securities of equity and diversified UCITS marked an increase of 25% after 18.9%.

With MAP

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