Remittances to Morocco Reached $9.5 Billion in October 2023

The flow of remittances from Moroccans abroad has continued to break records every year, reaching MAD 96.4 billion ($9.5 billion) in the first 10 months of 2023, a 6.1% year-on-year increase, according to data from Morocco’s Exchange Office (OE).

Rabat – The flow of remittances from Moroccans abroad has continued to break records every year, reaching MAD 96.4 billion ($9.5 billion) in the first 10 months of 2023, a 6.1% year-on-year increase, according to data from Morocco’s Exchange Office (OE).

Data compiled by the Office’s latest update indicate that the flow of remittances maintained an upward trajectory for the past five years, going from $5.4 billion in the first months of 2019 to $8.9 billion in 2022.

An earlier report from the OE showed that France, Spain, and Italy are the largest source of remittances flowing to Morocco.

The three European countries accounted for a staggering 57% of the overall volume of remittances sent to Morocco in 2022, the report explained.

At the end of 2022, the volume of remittances reached record-high levels, settling at MAD 110.7 billion ($11.1 billion), a 16% increase from last year’s MAD 95.5 billion ($9.5 billion). The average annual growth rate for remittances between 2019 and 2022 is now at 19.4%.

In terms of the share of each country, France remains the top source country with 32% of remittances, followed by Spain with 13%, Italy with 11.5%, and Saudi Arabia with 7.6%. Over the past five years, remittances from Canada to Morocco recorded the highest growth rate at 28%, followed by Spain with 27.6% and Italy with 20%.

Remittances are of strategic importance to Morocco, as they provide a stable source of foreign exchange.

Along with tourism, remittances are the country’s main source of foreign exchange and a source of income for thousands of families. The inflow of remittances consistently exceeds even the inflow of foreign direct investment. At the height of the COVID-19 pandemic, remittances provided a vital source of income to Moroccan families.

“Remittances are of vital importance as they provide a source of the livelihood of many families,” Morocco’s central bank governor, Abdellatif Jouahri said in January 2023.

In Morocco, the 37% “historic” increase in the volume of remittances in 2021 catalyzed the country’s post-pandemic economic rebound, he explained.