Morocco’s Central Bank, Bank Al Maghrib, said it will launch the gradual float of the Dirham as of June in collaboration with the IMF to reach a flexible exchange rate system. In a statement to Reuters, Governor of Bank Al Maghrib, Abdellatif Jouahri, said that the first stage of Dirham liberalization will start in June, auguring a process that may last 15 years before reaching full flexible exchange system. Morocco has announced plans for the liberalization of the pegged Dirham in collaboration with the IMF, which advocates a flexible exchange regime to strengthen the competitiveness of the Moroccan economy and its resilience against external shocks. Buoyed by increasing demand on its phosphates and low oil prices, Morocco finds in the current economic context propitious conditions for the gradual float of the Dirham as its imports have been reduced in return for bolstered revenues. This cautious and gradual approach will enable the Moroccan economy to wither the risks of a hastened Dirham float and the potential devaluation that may ensue.

Source: The North Africa Journal April 20, 2017 00:11 UTC