Morocco Adopts More Flexible Exchange Rate to Boost Standing
- Central bank to allow dirham in 5 percent band around peg
- Bank Al-Maghrib going ahead with IMF-urged plan after delay
Photographer: Mark Williamson/Stockbyte/Getty Images
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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.