The International Monetary Fund (IMF) has called on Morocco to move forward to increase the flexibility of the exchange rate in order to enhance the economy's resilience to external shocks and enhance the competitiveness.
In January 2018, Morocco expanded the range of dirham to hard currency trading to 2.5 percent from the benchmark price of 0.3 percent.
The IMF announced in its report on economic and financial developments, that the first phase of transition to more flexible exchange rate was successful, the current conditions are still favorable to continue this reform for preventive purposes, because it will help the economy absorbing any potential external shocks and maintain its external competitiveness.
The Moroccan authorities informed the International Monetary Fund that the next stage in floating of the dirham will be launched when the economic conditions permit. Noting that the central bank has not intervened in the foreign exchange market since March 2018.
Source (IMF website, Edited)
