Morocco’s Central Bank Governor Explains Recent Dirham Depreciation

The depreciation of the Moroccan currency was at the heart of the meetings with the heads of the banks’ trading rooms. During a press briefing held in Rabat on Tuesday following the 3rd meeting of BAM’s Council in 2022, the Governor of Bank Al Maghrib (BAM), Abdellatif Jouahri, indicated that "very significant movements" in imports of cereal products, energy and semi-products, - despite the good performance of travel receipts and remittances from Moroccans living abroad - would explain the depreciation of the dirham in recent months.

Imports are expected to increase by 34.5% in 2022, mainly reflecting a heavier energy bill of 135.1 billion dirhams (MMDH), compared to 75.8 MMDH in 2021, and an increase in semi-product purchases to 167 MMDH (after 115.5 billion), BAM notes, stressing that the "uncertain" situation both nationally and internationally is not favorable for the transition to the next phase of dirham flexibility.