Morocco Currency Reform on Right Track

Few weeks after the launch of the gradual dirham float, the International Monetary Fund has advised Morocco to maintain the current reform pace with a view to strengthening the economy’s competitiveness, AllAfrica reported. “Unlike other emerging economies, Morocco didn’t loosen currency restrictions under pressure, so authorities can take their time with future steps,” Nicolas Blancher, the IMF’s mission chief for Morocco, told the press in a conference call. Morocco is adopting a policy that enables an “orderly and gradual” transition, Blancher said. Morocco started on January 15 the gradual floating of its currency, raising the official band of dirham’s fluctuation to 2.5% above or below the official rate from the previous 0.3%. Authorities said the measure was part of a broader plan to boost growth by opening the Moroccan economy and making it more resistant to external shocks.