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Tantan – Morocco’s central bank, Bank Al-Maghrib, is ready to act if rising global tensions begin to affect the national economy, Governor Abdellatif Jouahri said on Tuesday.
Speaking after the latest board meeting of Bank Al-Maghrib, Jouahri stated that the bank could hold an emergency meeting if the impact of the war in the Middle East starts to weigh on growth or inflation.
He explained that uncertainty remains very high at the global level, noting that no one can predict how the situation will evolve. The conflict adds to existing pressures linked to the war in Ukraine and US trade policy, creating a fragile international economic environment.
Moroccan authorities are closely monitoring key indicators, including the balance of payments, the state budget, and the subsidy system. Jouahri revealed that a joint monitoring unit has been set up between the central bank and the Ministry of Finance to track developments and respond quickly if needed.
Despite these uncertainties, the central bank decided to keep its benchmark interest rate unchanged at 2.25%. The decision reflects moderate inflation expectations and the continued resilience of Morocco’s economy, supported by recent stress tests.
However, Jouahri warned that the effects of the ongoing war are already visible in global financial markets and commodity prices, especially energy. The overall impact will depend on how long and how intense the conflict becomes.
Jouahri also highlighted Morocco’s ability to respond to external shocks, saying that if necessary, the country can draw on a flexible credit line from the International Monetary Fund, valued at $4.5 billion and approved in April 2025. This mechanism is designed to help countries prevent crises and manage external shocks without strict conditions.
He concluded that Morocco has built strong experience in managing crises over the past decade and remains prepared to act as conditions evolve.
The Middle East is facing a sharp and ongoing escalation after Israel and the United States launched strikes on Iran, triggering a cycle of retaliation across the region. Iran has responded with missile and drone attacks targeting Israel, US positions, and strategic sites in parts of the Gulf.
The situation is highly volatile, with risks of further escalation involving key energy-producing countries and vital shipping routes such as the Strait of Hormuz.
The economic impact is already being felt globally, as oil and gas prices rise due to fears of supply disruptions, while increased uncertainty is weighing on financial markets, trade flows, and inflation.
