Morocco’s central bank aims to increase green bond investments to 10% of reserves

Bank Al-Maghrib (BAM) plans to significantly increase its investments in green, social, and sustainable bonds, aiming to boost this segment from its current 7% share of foreign exchange reserves to 10% in the long term.

This announcement was made by Wali of BAM, Abdellatif Jouahri, during a conference on «the macroeconomic impact of climate change» co-organized with the Central Bank of Spain.

«Sustainability is now integrated into BAM's investment strategy, favoring responsible and sustainable investments», Jouahri stated. He highlighted BAM's commitment by mentioning a $100 million investment in green bonds issued by the World Bank during COP22 in Marrakech (2016) and a subsequent $200 million investment in 2023.

Jouahri emphasized the challenges of combating climate change, requiring substantial financing due to high global public and private debt levels and limited budget margins. «For Morocco, the World Bank estimates investment needs between 2022 and 2050 at around $78 billion», he noted.

He further stressed the central banks' responsibility to consider climate change's impact when fulfilling their duties. «Climate change affects growth, employment, and inflation, key variables shaping monetary policy decisions», he explained. «Additionally, climate-related risks impact banking and insurance activities, potentially compromising financial stability».

The conference, attended by several dignitaries including Moroccan ministers, the President of the Economic, Social and Environmental Council, and representatives of the Moroccan financial sector, also involved participation from the Governor of the Bank of Spain and the Spanish Ambassador to Morocco.