Morocco Aims to Boost Diaspora Remittances by Cutting Transfer Costs

Reducing the costs of remittances from Moroccans Residing Abroad (MREs) is considered a top priority in Morocco, said Abdellatif Jouahri, Wali of Bank Al-Maghrib, speaking at the opening of the Rabat Forum on reducing the costs of remittances from the African diaspora.

Despite a difficult economic situation related to the Russia-Ukraine tension, remittances from Moroccans living abroad (MREs) grew by 37% in 2021 and 13% in 2022, reaching 8% of GDP, he recalled, specifying that this trend is maintained thanks to a series of actions undertaken by the central bank and the state. "Morocco has developed, for several decades, a solid banking infrastructure based on a transnational proximity presence which is a major asset for supporting Moroccans abroad in their countries of residence," said the governor.

In this context, measures have been taken to significantly reduce the costs of MRE transfers. In 2009, BAM worked to lift any exclusivity clause linking international money transfer operators to their partners in Morocco, Jouahri recalled. This provision has allowed Moroccan banks to be established in 27 countries on the continent. They have subsidiaries and branches in 7 European countries and about fifty representative offices across different regions of the world.

However, major challenges remain to promote the financial inclusion of migrants, the official said, citing among others the European Union’s project to suspend the intermediation activity carried out by banking subsidiaries located in Europe on behalf of the diaspora and on behalf of their Moroccan parent companies. This provision, if adopted, will tighten the conditions for providing this activity, he expressed concern.