Transition to a more flexible exchange rate system : 12/01/2018

Transition to a more flexible exchange rate system

The Ministry of Economy and Finance, after obtaining the assent of Bank Al-Maghrib, decided to adopt , from Monday, January 15th 2018, a new exchange regime in which the parity of the dirham is determined within a band of fluctuation of ± 2.5 percent against ±0.3 percent currently, compared to a central rate established by Bank Al Maghrib on the basis of a currency basket composed of the EUR and USD by up to 60% and 40% respectively.

Within the framework of the new regime, Bank Al Maghrib will continue to intervene on the foreign exchange market to ensure its liquidit.

This reform is undertaken under conditions characterized by the soundness of the financial sector and the consolidation of macroeconomic bases, including an appropriate level of foreign exchange reserves and a controlled inflation.

It will also be supported by the structural and sector-based reforms.

The move is aimed at strengthening the resilience of the national economy to external shocks, supporting its competitiveness and improving its level of growth. It will also support the structural changes of the Moroccan economy over the past few years, particularly in terms of diversification, openness and integration into the global economy.

The exchange rate reform, which sustains the progress at the macroeconomic level and the structural and sector-based reforms as well as the openness process of our economy to the outside world, is a further step towards the emergence of our economy.