Morocco Says Currency Float Up to 15 Years Away as Reforms Vital
- Central bank has loosened dirham peg to boost competitiveness
- Governor Jouahri says new band implies 2.5% depreciation
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Morocco may need anything from five to 15 years to fully float the dirham, with further currency liberalization dependent on other reforms including strengthening the country’s export base and reducing the current-account deficit, central bank Governor Abdellatif Jouahri said.
Policymakers finally eased their grip on the dirham on Jan. 15, allowing the currency to trade 2.5 percent above or below the official peg, compared with 0.3 percent either side previously. The change implies a 2.5 percent depreciation in the dirham, “a start” that puts the onus on the government to make the next move, Jouahri said in an interview in Marrakesh on Monday, where he was attending a conference co-sponsored by Morocco and the International Monetary Fund.