The year 2025 ends with a monetary status quo. Gathered for its last quarterly session, the Bank Al-Maghrib (BAM) Council decided to keep the key rate unchanged at 2.25%, considering this level appropriate given a controlled inflation rate of 0.8%. But beyond the figures, it is the announcement of a pilot phase in 2026 for inflation targeting, a prelude to a more extensive flexibility of the dirham , that is drawing attention.
Eight years after the start of the reform of the exchange rate regime, Bank Al-Maghrib is maintaining its course of action: no haste. While the dirham has been evolving within a fluctuation band since 2018, Governor Abdellatif Jouahri is preparing the ground for a new major step by 2026, while insisting on the need to protect small businesses from the risks of the market.
At the Moroccan Parliament, Abdellatif Jouahri, Wali of Bank Al-Maghrib (BAM), discusses the importance of reforming the exchange rate regime.
Initiated several years ago, the process of liberalizing the exchange rate regime in Morocco is progressing. The ultimate goal is to strengthen the flexibility of the dirham and economic resilience.
In its 2023 annual report, Bank Al-Maghrib (BAM) said it was satisfied with the "good conditions" in which the flexibilization of the exchange rate regime is evolving.
Nadia Fettah, Minister of Economy and Finance, welcomes the ongoing reform of the Moroccan exchange rate regime, stating that an important step is being taken to improve the flexibility of the dirham.
Morocco does not intend to modify its currency exchange band for the time being, said Finance Minister Nadia Fettah Alaoui on Monday. Since 2018, the Kingdom has undertaken gradual reforms of the foreign exchange market but has made no significant changes since last year when it increased the authorized fluctuation margin for the dirham from 2.5% to 5%.
Some conversion platforms on Google seemed to indicate on Wednesday a sharp depreciation of the dirham against the euro, sparking a wave of reactions on social media. This is not the case, reassures Bank Al-Maghrib, which states that the value of one euro is around 11 dirhams.
The Governor of Bank Al-Maghrib (BAM), Abdellatif Jouahri, is still against the liberalization of exchange rates. He does not approve of a new widening of the fluctuation bands, despite the latest recommendations from the IMF.
The Moroccan currency depreciated by 1.02% against the Euro and remained almost stable against the dollar, during the period from September 10 to 16, 2020.
Bank Al-Maghrib (BAM) indicates that from July 9 to 15, the dirham depreciated by 0.56% against the euro, while against the dollar, the Moroccan currency gained 0.81%.
The Covid-19 pandemic, which has brought some key sectors of the Moroccan economy to their knees, has fueled the trafficking of foreign currencies. It has recorded a significant increase on the Moroccan black market.