Morocco to Loosen Dirham’s Ties to Euro and Dollar by 2026

Linking the dirham to the euro and the dollar, but also to a broader basket of currencies, thus offering greater flexibility to the Moroccan economy in the face of international variations. This is the ambitious project that Morocco intends to implement to reduce the dependence of its dirham on fluctuations in the euro and the dollar and to relax the peg of the dirham to a basket of euros and US dollars by 2026. Abdellatif Jouahri, governor of Bank Al-Maghrib (BAM), announced this transition in an interview he gave to Bloomberg in Washington, USA on the sidelines of the annual meetings of the International Monetary Fund (IMF) and the World Bank. According to him, this transition is part of a plan to gradually ease the exchange rate, suspended during the Covid-19 pandemic. The central bank is "technically ready" for this step and the regulators are developing a plan to implement it, Jouahri assured, adding that the banks are also prepared for