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Join on Telegram Rabat – Morocco’s central bank, Bank Al-Maghrib (BAM) enjoys a high level of transparency and autonomy that is enabling it to maintain the trust of stakeholders, says a new report from the International Monetary Fund (IMF).
In a review of the bank’s transparency code, the IMF explains that BAM has “comprehensive transparency practices in a number of areas,” especially in relation to reporting on price and financial stability.
According to the IMF, these successful transparency practices “reflect the BAM’s public commitment to transparency anchored in the new 2019 BAM Law and articulated as a strategic orientation under the quinquennial plan for 2019-2023.”
BAM’s work to establish communication channels with the public at large is a prime example of the bank’s efforts to boost transparency. The Moroccan central bank has recently started using digital channels such as websites, videos, and social media in addition to “creative methods” for educational purposes dedicated to enhancing citizens’ financial education.
Noting the legal framework governing the central bank, the IMF judges that they are well-disclosed.
“In addition to publishing its up-to-date and consolidated legal framework, the BAM also publishes vital information regarding the historical context and evolution of the legal framework governing its primary mission, as well as its core and other missions.”
While commending the central bank’s efforts to enhance transparency standards, the IMF review pointed out areas that could be further improved. Most notably, the bank could better communicate its distinct functions and objectives to the public.
“The BAM’s transparency practices and the public’s understanding with regard to the BAM’s objectives may be further enhanced if its functions, in addition to its objectives, were distinctly described and explained to the public,” the report argues.
Regarding management and accountability practices, IMF maintains that while they are already available, additional disclosure is needed for external audit arrangements, and risk management actions.
The bank’s monetary policies are equally “well communicated,” the report adds. “The transparency framework for monetary policy is well established covering policy decisions, supporting analysis, monetary operations, and related reporting.”
The central bank’s January 2018 decision to transition to a more flexible exchange rate regime provided the basis for establishing a “high level of transparency” in the BAM’s efforts to maintain price stability.
IMF also lauds the bank’s efforts to inform the public at large of measures taken and the benefits of inflation-targeting monetary frameworks.
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