Morocco is gearing up to relax its exchange rate regime in 2026, after a pause due to the pandemic. This decision was disclosed by Bank Al Maghrib’s governor, Abdellatif Jouahri, during the annual meetings of the IMF and World Bank in Washington, as reported by Bloomberg News.
The plan involves gradually shifting the dirham from its current peg to a combo of euros and US dollars. Jouahri mentioned that the central bank and regulators are ready for this transition. The country had started moving towards a free float of the dirham in 2018, but faced challenges from economic slowdowns and the impacts of Covid-19.
The future steps will lead to a market-determined currency, although more time is needed for small businesses to adjust. Morocco is also considering issuing Eurobonds worth $1 billion by early 2025. There are plans to set up a currency swap market in the next year for derivatives trading.