Morocco’s Central Bank Chief Urges Exchange Rate Reform to Boost Economic Resilience

The reform of the exchange rate regime is of strategic importance for the future of the national economy, as part of the structural reforms aimed at strengthening its resilience, said on Monday in Rabat the Wali of Bank Al-Maghrib (BAM), Abdellatif Jouahri, before the Finance, Planning and Economic Development Committee of the House of Councillors. According to his explanations, the exchange rate regime is the cornerstone of the Kingdom’s monetary policy and an essential pillar of macroeconomic stability, due to its direct impact on competitiveness, trade, foreign investment and the purchasing power of citizens.

That is why "a reform of this magnitude requires a prudent, gradual and rigorously prepared approach," he noted. He was keen to specify that the objective is not to unbalance the economic fundamentals, but to consolidate and adapt them to the requirements of a modern and open economy. In this regard, the central bank has devoted the necessary time to carrying out the required studies and analyses, examining best international practices, as well as assessing the impact of this reform on the national economy and purchasing power, in close coordination with the Ministry of Economy and Finance, said Jouahri.

According to him, this reform is the subject of regular monitoring by the International Monetary Fund (IMF). The latter "has never ceased to recommend that the Moroccan authorities move forward on this project," assures the Governor of BAM, adding that Morocco has only launched this reform after meeting all the prerequisites.