Morocco Widens Currency Trading Band, Advancing Dirham Flexibility Reform

According to the Ministry of Economy and Finance, this transition, after the opinion of Bank Al-Maghrib, will be carried out on the basis of a basket of currencies, composed of the euro (EUR) and the US dollar (USD), at 60% and 40% respectively. It is part of the continued reform of the exchange rate regime, initiated in January 2018, and comes after the achievement of the objectives assigned to the first phase.

The second phase is starting in a favorable internal macroeconomic and financial context, marked in particular by an appropriate level of foreign exchange reserves, controlled inflation, sustainable public debt and a solid financial sector.

As for the reform of the exchange rate regime, a voluntary, gradual and orderly process, spread over several stages, it will strengthen the ability of the Moroccan economy to absorb external shocks, support its competitiveness and thus contribute to improving its growth.

Furthermore, Bank Al-Maghrib maintains that, in accordance with its status, it will not fail to ensure the proper functioning of the foreign exchange market and will intervene, if necessary, in this market to ensure its liquidity.