Morocco to take a breath this year from its gradual more flexible exchange rate

Morocco is planning to stop in 2019 its gradual push for a more flexible exchange rate, reports Bloomberg, indicating that the country is finding difficulties dealing with «deteriorating finances».

The kingdom adopted a more flexible exchange rate last year to boost the competitiveness of its economy, but the country will have to wait until 2020 to further loosen the plan, official sources told Bloomberg.

The same sources explained to the American business platform that the decision was based on the «unpredictable global trade environment» which «could hurt foreign-currency reserves». Meanwhile, they stressed that Morocco is going to focus on «reducing its fiscal deficit and boosting tax revenues this year».

For the record, the head of the planning agency stated this week that Morocco’s economy will grow to 2.9 percent in 2019.

The grow is, however, slower than what has been registered last year, indicated Ahmed Lahlimi who stressed that the forecasts were based on «prospects for an average crop year and an oil price of $67 a barrel».