Morocco to Decide Next Month on Flexible Exchange-Rate Steps
- Steps and time-frame will be discussed with IMF next month
- Morocco considering renewing IMF $5 billion credit line
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Morocco will decide how and when it will shift to a flexible exchange-rate system when an International Monetary Fund delegation visits the North African kingdom next month, central bank Governor Abdellatif Jouahri said.
Authorities will discuss the time-frame and the required steps with IMF officials, he said. Bank Al-Maghrib is “considering widening the bands for fluctuation of the dirham, then observing how the market deals with this change, a process that typically takes a few years,” Jouahri said in an interview in Washington, where he attended IMF and World Bank meetings. Afterwards, it may “allow market forces to determine the value of the dirham with limited intervention before letting it go completely,” he said.