Moroccan Diaspora Remittances Surge to Record 8 Billion Euros, Boosting Economy

Remittances from MREs are expected to reach 8.325 billion euros, according to the forecasts of the Office des Changes for the year 2021, while the World Bank had announced an amount of 143 million less. In any case, with this record amount recorded this year, remittances from MREs now represent 7.4% of Morocco’s GDP, according to the World Bank, cited by the newspaper El Confidential.

To read: Moroccan Expat Remittances Surge 42.5% to 71.88 Billion Dirhams, Boosting Trade Balance

It is "the first source of revenue in the balance of payments," ahead of automotive exports (6 billion euros), phosphates (5.853 billion euros) and tourism, says Íñigo Moré, an analyst at Remesas.org. This increase in MRE remittances would be explained by "the continued momentum of solidarity towards their relatives in Morocco affected by the health crisis," says Abdellatif Jouahri, governor of Bank Al-Maghrib.

To read: Morocco Set to Receive Record $9.3 Billion in Remittances from Diaspora, World Bank Reports

According to Iñigo Moré, the reasons for this boom in remittances recorded for the past two years are elsewhere. "It’s because today, MREs cannot return to Morocco and are therefore forced to send money through formal mechanisms," he points out, adding that "these data highlight the contribution of MREs to the Moroccan economy." "For example, making a transfer via Western Union from Spain can represent 9% of the transaction, according to the World Bank," the expert argues.

To read: Presidential Candidate Proposes Blocking Remittances to Pressure Deportation Compliance

The bulk of the funds transferred by MREs come from Europe, particularly from France (35.7% of the total in 2020), Spain (9.2%), and Italy (9.1% of the total). The Covid-19 pandemic has revealed the true volume of MRE remittances, which Arnaud Montebourg, the Socialist candidate for the next French presidential election, is trying to exploit to put pressure on Maghreb countries, including Morocco, to force them to accept the irregular migrants they wish to expel. "Remittances are a windfall for them, but now we have to tell them: ’Enough!," he said during a program.