FacebookInstagramTwitterContact

 

Vehicles abandoned and dumped on the streets are an eyesore           >>           Immigration office hunts two foreigners at protest in Batam           >>           Faulty pipes disrupt traffic in MCE tunnel, Somerset Road in separate incidents            >>           Cristiano Ronaldo wants Real Madrid exit over new contract delay - source           >>           Sanchez move to Man United hinges on Mkhitaryan joining Arsenal - Raiola           >>           Manchester United set to hand Jose Mourinho contract extension - sources           >>           His Majesty Audience Ceremony           >>           Berkenan menerima mengadap Menteri Luar Negeri Kingdom of Thailand           >>           Mangsa banjir terima bantuan           >>           Naadams open across Inner Mongolia           >>          

 

SHARE THIS ARTICLE




REACH US


GENERAL INQUIRY

[email protected]

 

ADVERTISING

[email protected]

 

PRESS RELEASE

[email protected]

 

HOTLINE

+673 222-0178 [Office Hour]

+673 223-6740 [Fax]

 



Upcoming Events


The Incredibles 5Km Fun Run
January 7th, 2018 | 00:00 AM


20th Consumer Fair
January 24th, 2018 | 00:00 AM





Prayer Times


The prayer times for Brunei-Muara and Temburong districts. For Tutong add 1 minute and for Belait add 3 minutes.


Imsak

: 05:02AM

Subuh

: 05:12AM

Syuruk

: 06:34AM

Doha

: 06:58AM

Zohor

: 12:31PM

Asar

: 03:53PM

Maghrib

: 06:26PM

Isyak

: 07:40PM

 



The Business Directory


 

 



World Business


  Home > World Business


Morocco Adopts More Flexible Exchange Rate to Boost Standing


Photographer: Mark Williamson/Stockbyte/Getty Images

 


 January 13th, 2018  |  09:53 AM  |   761 views

MOROCCO

 

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.

 

Bank Al-Maghrib, Morocco’s central bank, said in a statement it would widen the official band within which the dirham fluctuates to 5 percent, with a maximum daily moves of 2.5 percent above or below the official rate. The dirham is currently allowed to fluctuate within a much narrower band of 0.3 percent 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.

 

The International Monetary Fund had urged Morocco to move ahead with its plan as soon as possible.

 

The central bank said the measure was part of a broader plan to open up the Moroccan economy and aimed to make it more resistant to external shocks as well as helping to boost growth. “This reform accompanies the structural changes that the national economy has seen in the past years,” it said.

 

No Currency Crisis

 

The dirham is pegged to a two-currency basket weighted 60 percent to the euro and 40 percent to the U.S. dollar. It closed at 9.25 on Friday. Morocco’s central bank has been promising exchange rate liberalization for years, and the move had been expected in the second half of 2017. As the year went on, it became increasingly clear that the step would be delayed.

 

Unlike nearby Egypt, which floated its pound in November 2016, Morocco isn’t facing a currency crisis and wasn’t under pressure to take immediate action. It has an investment-grade credit rating and an expanding private sector.

 

Economic growth is expected to have averaged 4.1 percent in 2017. Headline inflation is estimated at 0.7 percent in 2017, down from 1.6 percent in 2016. Foreign exchange reserves, which faced pressure in 2017 due to uncertainty over the move, have stabilized at a level sufficient to cover five and a half months worth of imports.

 

Egypt, by contrast, faced plummeting foreign reserves and a severe dollar shortage that all but paralyzed trade. Imbalances led to a ballooning black market for dollars, piling downward pressure on the pound before most controls were lifted. The pound has halved in value since the float, driving inflation to record levels above 30 percent.

 


 

Source:
courtesy of BLOOMBERG

by Lin Noueihed

 

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]

 

Related News


Rela Members Protest

 2018-01-17 09:28:01

Rohingya Crisis: Bangladesh And Myanmar Agree Repatriation Timeframe

 2018-01-17 10:07:18

Who's Afraid of QE's End? Not These Emerging European Economies

 2018-01-17 10:27:46