Morocco Adopts More Flexible Exchange Rate

Morocco will adopt a more flexible exchange rate from Monday as part of a long-awaited plan aimed at boosting the competitiveness of the North African nation’s economy, Bloomberg reported. Bank Al-Maghrib, Morocco’s central bank, said in a statement it would widen the official band within which the dirham fluctuates to 5%, with maximum daily moves of 2.5% above or below the official rate. The dirham is currently allowed to fluctuate within a much narrower band of 0.3% either side of the peg. The central bank will set a new reference price for the dirham on Monday. “This is part of broader monetary reform aimed at enhancing the competitiveness of our economy and meeting our development plan objectives,” government spokesman Mustafa Khalfi said in a telephone interview before the official statement was released. Moroccan officials have said that the move will help the country’s efforts to transform itself into a regional hub and a business gateway to Africa.