Morocco’s new exchange rate regime is on the right path, according to IMF

Morocco’s new exchange rate regime is «a step in the right direction» that would make of the country an attractive destination for investors and an African hub, indicated the International Monetary Fund (IMF) during a conference held in Marrakech.

Speaking to Reuters, Jihad Azour, director of the IMF Middle East and Central Asia department, stressed that the country’s decision is backed by the international organization. «We were very much satisfied with the way they did it», he declared pointing out that by adopting other reforms, such as lifting fuel subsidies, Morocco has guaranteed the growth of its economy to 4.5 in 2017.

Meanwhile Azour expects Morocco’s economic growth to expand in the current year and the GDP’s to slow down to 2.8. He also complemented the Kingdom’s recent reforms insisting that it is among «the countries in the region that is very advanced in their reforms». And to conclude the IMF official stated saying : «They are on the right track. This is paying off.»

IMF's comments

On Friday, 12th of January, the Ministry of Economy and Finance, and after consulting with the Moroccan central bank, decided to adopt a new exchange rate regime which was highly recommended by the IMF. A few days after this announcement, the international financial organization headquartered in Washington, commented saying that this would help further improve the country's external position, enhance the economy’s capacity to absorb shocks, and preserve its external competitiveness.

Speaking during a conference held in the American capital, IMF managing director, Mitsuhiro Furusawa, stated that : «Adopting the central bank law and continuing efforts to increase supervisory capacity in line with 2015 Financial Sector Assessment Program recommendations will help strengthen the financial sector policy framework».

Few days before that, the IMF Executive Board completed the third and final review under the Precautionary and Liquidity Line (PLL) Arrangement for Morocco. The arrangement supports the authorities’ economic reform program to rebuild fiscal and external buffers and promote higher and inclusive growth.