Rabat - Morocco is moving towards the liberalization of its foreign exchange rate regime in what appears to be an attempt to install confidence in foreign investors.
Rabat – Morocco is moving towards the liberalization of its foreign exchange rate regime in what appears to be an attempt to install confidence in foreign investors.
The country’s Exchange Office is reportedly working gradually on the liberalization of the highly regulated foreign exchange rate regime.
The latter will witness a wide range of regulatory and institutional reforms that are expected to have important implications on the economy’s business cycle, trade and capital flows.
Under the new project of several hundred pages, Moroccans will be able to buy property abroad on the condition that they obtain permission from the Exchange Office. The Office will also have to examine their financial and tax capabilities, the same source said.
The new project also aims among other things to remove convertible accounts where currencies and securities can be exchanged for other currencies or types of securities from the Moroccan foreign exchange rate regime.
“We believe that this currency criterion is no longer relevant,” Jawad Hamri, Director of the Exchange Office, was quoted by French-speaking news website Telquel as saying. “[So] we remove this constraint and we will focus on other existing criteria,” he added.
The sum of cash that could be carried by people leaving the country currently stands at MAD 40,000. However, the Exchange Office is planning to introduce an endowment dependent on income tax paid by the tax payer that could increase the sum by 50 per cent.