Morocco’s Currency Plunges 5% as Foreign Exchange Shortage Hits Economy

Export sectors such as automotive or textiles are being hit hard by the global health crisis, causing a drastic drop in foreign exchange earnings, analyzes L’Économiste which indicates that the announced drop in tourism revenues, remittances from Moroccans living abroad and foreign direct investment foreshadows a widening of the current account deficit.

The dirham has depreciated by 5% against the euro/dollar due to the current situation. An unprecedented drop for the Moroccan currency in 50 years. However, "the price of the dirham and the foreign exchange position of banks have not yet reached the psychological threshold to trigger an intervention by the central bank," it is noted. However, a small positive note: foreign exchange reserves are stable and stand at 242 billion dirhams.