Abu Dhabi: Morocco is aiming to roll out a flexible exchange rate system in early 2017, according to Abdul Latif Al Jawahiri, the country’s Central Bank governor.
“We are currently considering the move from the fixed exchange rate to a more flexible exchange rate. We have been working for two years with the International Monetary Fund on this subject, and before coming here, we had meetings with the technical mission of the IMF on this subject,” he told reporters on Sunday.
The governor said that the Moroccan Central Bank will be working with the IMF throughout the second half of this year on the implementation policy and the timeline. The first stage of roll out will probably start in early 2017, he added.
Morocco said last year it will adopt a flexible exchange rate to attract more investment and turn itself into a regional financial hub.
In March 2016, the Moroccan Central Bank cut interest rates by 25 basis points for the first time since December 2014 in an attempt to boost the country’s economy. Asked whether there are further plans to reduce rates, Al Jawahiri declined to comment but said the Central Bank’s board of directors will meet on June 21 to discuss the issue.
— With inputs from Bloomberg
