Morocco’s central bank, Bank Al Maghrib (BAM), is poised to proceed to the next stage of the flexible exchange system, Finance and Economy Minister Nadia Fettah Alaoui told SkyNewsArabia on Monday.
She stated that Morocco was able to establish a 5% flexible exchange rate despite recent global economic swings.
The Moroccan minister went on to say that the country is currently focused on maintaining macroeconomic balances as it recovers from successive shocks before moving to the next level of flexible exchange rate.
She also acknowledged that BAM projects that the economy has reached a level which would allow for the next stage of fiscal reform.
Morocco began its voluntary and gradual move from a fixed to a more flexible currency rate regime in January, 2018. After the decision, the dirham fluctuation band increased from ±0.3% to ±2.5%, eventually reaching 5% in 2020.
Morocco recorded economic growth of 3.2 percent in 2023 compared to 1.2 percent in 2022, despite challenges in the agricultural sector, and is expected to reach 3.4 percent economic growth for this year, the minister added.
She also indicated that the economic growth would otherwise have been expected to reach 3.7%, were it not for climate variability and water scarcity issues.
Morocco has allocated $1 billion to assist farmers in agriculture and livestock farming, and this operation has also contributed to keeping prices fairly stable in the markets, Fettah elaborated.
The Minister also stated that the industry sector brings in at least $3 billion in investment and that the Kingdom aspires to triple this figure by 2030.
Fettah added that Morocco has made great strides in this field, as it has trained engineers and technicians in several industrial fields, and possesses a clear strategy in renewable energies and decarbonization.
The number of tourists last year exceeded 14 million, an increase of 12 per cent compared to 2019, the year before Covid-19. The goal is to reach 17 million tourists by 2026, she added.
Morocco’s bid to host the 2030 World Cup alongside Spain and Portugal–along with the 2025 Africa Cup–will undoubtedly encourage foreign investment in this sector.
The Moroccan government supports directly the industry with six billion dirhams, while concurrently encouraging the private sector to invest in the industry, as well.