The International Monetary Fund revealed that the current international conditions are not conducive to accelerating the floating of the Moroccan dirham exchange rate.
The head of the IMF delegation, Roberto Cardarelli, explained, regarding the prevention and liquidity line and the series of liberalizing the exchange rate of the dirham, that "the transition to a higher stage in the series of floating the Moroccan dirham exchange rate requires waiting until the state of uncertainty prevailing at the international level is removed."
He pointed out that "Morocco witnessed many external shocks that curbed the rapid recovery after the Corona pandemic," noting that "the drought negatively affected agricultural production, while the shocks related to the Russian war in Ukraine fueled inflation and reduced purchasing power." He pointed out that "the revival of tourism, remittances of Moroccans around the world (cash), and exports contributed to alleviating these negative shocks."
Morocco began floating its local currency in January 2018, when it allowed the exchange rate of the dirham to move by a margin of 2.5 percent, up or down, against a basket of the euro (with a weight of 60 percent) and the US dollar (with a weight of 40 percent), as a first stage for the full float over a period of 10 Years. On March 9, 2020, Morocco began implementing the second phase of liberalizing the dirham exchange rate, expanding the margin of movement to 5 percent, up or down.
Source (Anadolu Agency, Edited)
