Morocco’s Foreign Exchange Reserves Surge to Cover 7 Months of Imports

According to the Minister of Economy and Finance, who was reviewing the execution of the 2020 finance law at the end of June, with parliamentarians of both Houses in Rabat, Morocco’s foreign exchange reserves have improved significantly, confirming the forecasts of the daily Aujourd’hui le Maroc which announced in March that "the drop in consumption could make Morocco’s reserves gain an additional one to two months".

Today, Morocco’s foreign exchange stands at over 7 months of import cover, compared to just 5 months before the Covid-19 health crisis in March, the same source said. Contrary to the downward trend noted in macroeconomic indicators, the country’s foreign assets are performing well due to several factors.

These include the drawdown in early April of the entire PLL (Precautionary and Liquidity Line) from the International Monetary Fund (IMF) worth $3 billion. In addition, the drop in consumption and the fall in commodity prices have also contributed to the performance.

According to the same source, the foreign exchange cushion could be further strengthened in the second half of 2020.