Morocco to start move toward flexible currency this year

Morocco will begin the process of moving toward a flexible exchange rate system gradually in the second half of this year, the governor of the country’s central bank said Tuesday.
The North African country has had a fixed exchange rate regime for the dirham since the 1970s.
“There will be no devaluation. We are not in a situation of currency crisis,” central bank chief Abdellatif Jouahri told reporters.
“The International Monetary Fund (which has helped the Moroccan authorities in the process) did not impose anything on us. It is a voluntary decision,” Jouahri said.
Moroccan media have reported that the full liberalization of the dirham will take up to 15 years.
The World Bank said in a report in April that the “gradual move to a more flexible exchange rate regime” should “help strengthen Morocco’s competitiveness.”
It said the outlook for the country’s economy was expected to improve, provided the government remains committed to “pursuing prudent macroeconomic policies and implementing structural reform.”

Source: Arab News