Rabat – Morocco’s Ministry of Economy and Finance will launch a flexible exchange rate system for dirham currency on Monday, January 12, according to a statement issued on Friday by Morocco’s Ministry of Finance and Economy.
The decision made by the ministry concerns a new exchange rate regime where the parity of the dirham is determined within a band of fluctuation of ± 2.5 percent against ±0.3 percent currently, compared to a central rate set by Bank Al Maghrib on the basis of a currency basket composed of the EUR and USD by up to 60 percent and 40 percent respectively.
Morocco’s Bank Al Maghrib “will continue to intervene on the foreign exchange market to ensure its liquidity,” added the statement.
The decision is undertaken under conditions marked by the solidity of the financial sector and the consolidation of macroeconomic bases, including an appropriate level of foreign exchange reserves and a controlled inflation.
The ministry added that the reform will also be supported by the structural and sectoral reforms.
The decision taken by the ministry is aimed at strengthening the resilience of the national economy to exogenous shocks in order to support its competitiveness and to improve its level of growth, reported Maghreb Arab Press (MAP).
The exchange rate regime reform will also support the structural changes taking place in the Moroccan economy, particularly in terms of diversification, openness and integration into the global economy, concluded the statement.