Morocco can take its time with currency reforms, according to IMF

The International Monetary Fund (IMF) said on Thursday that Morocco can take its time when it comes to currency reforms, launched this year by the government to boost the country’s economic competitiveness, reports Bloomberg.

«Unlike other emerging economies, Morocco didn’t loosen currency restrictions under pressure, so authorities can take their time with future steps», said  Nicolas Blancher, the IMF’s mission chief for Morocco, during a conference call with reporters.

The comments of the official suggest that the Moroccan economy will continue to be one of the most successful ones in the Arab world, thanks to the stability that the country has enjoyed, while states such as Tunisia, Egypt and Syria suffer the consequences of the uprisings of the Arab Spring, said the same source.

According to IMF, Morocco managed a «transition which is orderly and gradual». «You want some gradual deepening of FX markets in Morocco on the dirham, and development of various segments like derivatives or other hedging instruments», added Blancher.

For the record, in January 2018 Morocco adopted a new exchange rate regime a new exchange rate regime where the parity of the dirham is determined within a band of fluctuation of ± 2.5%, against ± 0.3% currently, compared to a central rate set by the Bank Al-Maghrib on the basis of a currency basket composed of the euro and the US dollar by up to 60% and 40% respectively.