Morocco: controlled flexibility of the dirham

Jan 16, 2018 | Financial Afrik

It’s not the revolution. The Moroccan currency, the dirham, will evolve from Monday 15 January on a range of fluctuation of ± 2,5% against ± 0,3%, said the spokesman of the government Mustapha El Khalfi at the end of the meeting of the Council of the government.

The decision initially planned in July 2017 then postponed against a backdrop of polemics was taken by Mohamed Boussaid, Minister of Economy and Finance, in consultation with Bank Al Maghrib (Central Bank). “The reform of the exchange rate regime aims to strengthen the resilience of the national economy to exogenous shocks, to support its competitiveness and improve its level of growth,” says the Ministry of Finance in a statement on Friday 12 January in end of the day, at the close of the markets. With this new exchange rate, the parity of the dirham will be determined in relation to a central rate set by Bank Al-Maghrib on the basis of a basket of currencies made up of the euro and the US dollar at the level of 60% and 40%. Source: Financial Afrik