Highlights

In response to a question before the House of Counselors on July 11, 2017, Mr. Mohammed BOUSSAID, Minister of Economy and Finance, affirmed that the reform of the exchange regime aims to accompany the opening of Morocco to the world economy and structural changes in the national economy, as well as its integration into global value chains.

Mr. BOUSSAID said that this reform aims at preserving and strengthening Moroccan economic competitiveness, improving the rate of growth and employment, strengthening the capacity of the national economy to face a possible external shock and reducing the pressure on foreign currencies reserves.

"This reform also aims to accompany the development of the national financial sector and to contribute to the strengthening of the regional dimension of the financial center of Casablanca," he added.

For Mr. BOUSSAID, the success of the exchange reform depends on sound macroeconomic foundations, a solid financial sector capable of coping with MAD exchange rate fluctuations and a relatively developed exchange market providing players with the necessary tools to cover risks, in addition to a credible monetary policy and the ability to control the inflation rate.

The impact of the variation of the exchange rate on the inflation rate remains limited according to the estimates of the Ministry of Finance, he said, pointing out that a 1pc increase in the price of MAD rises from 0.15pc to 0.25pc only the rate of inflation.

Mr. BOUSSAID also stressed the need to continue improving the medium-term macroeconomic framework and adopting a gradual and prudent approach to the transition to a more flexible exchange regime.