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IMF: Morocco Got Involved in Reforming Exchange System from a Strong Position

IMF head of mission in Morocco Nicolas Blanche. Asharq Al-Awsat Arabic
IMF head of mission in Morocco Nicolas Blanche. Asharq Al-Awsat Arabic
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IMF: Morocco Got Involved in Reforming Exchange System from a Strong Position

IMF head of mission in Morocco Nicolas Blanche. Asharq Al-Awsat Arabic
IMF head of mission in Morocco Nicolas Blanche. Asharq Al-Awsat Arabic

IMF head of mission in Morocco Nicolas Blancher said that the decision to adopt resilient exchange system in Morocco is a sovereign decision that was taken by Moroccan authorities after years of preparation.

In an interview with Asharq Al-Awsat on the sidelines of the IMF regional conference in Marrakesh, Blancher said that Morocco is considered a rare case in reforms, since it chose to get involved in a moment of strength unlike several international experiences when countries found themselves compelled to carry out reforms under pressure.

Blancher also talked about the outcomes and future of Precautionary and Liquidity Line (PLL) between IMF and Morocco. He commented on the recently approved-upon decision regarding resilience in the exchange system, saying that results are reassuring till now and have so far tackled some concerns.

According to Blancher, the dirham fluctuation remained limited to a tight range compared to the margin newly determined for fluctuation. This is seen as a strong indicator on the activists and investors trust in the Moroccan currency and the economy, which brings a better outlook of the future. The IMF has been saying since years that the dirham value is close to the balance level, added Blancher, affirming that this remains true now.

He added that since 2012, Morocco signed three consecutive agreements that enabled the Fund to back Moroccan authorities' efforts in various fields, especially for the sake of assessing the economic condition and tackling some distortions. Since then, there has been a huge progress on the level of reinforcing structural reforms in Morocco and, therefore diversifying Moroccan economy and integrating it more in the global economy.

As for the Precautionary and Liquidity Line (PLL) between IMF and Morocco which would reach an end next July, IMF head of mission in Morocco saw that it is still early to discuss whether the agreement will be renewed or not.

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Hochstein to Asharq Al-Awsat: Land Border Demarcation between Lebanon, Israel ‘is Within Reach’

AFP file photo of Amos Hochstein speaking to reporters at the Grand Serail in Beirut, Lebanon
AFP file photo of Amos Hochstein speaking to reporters at the Grand Serail in Beirut, Lebanon
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Hochstein to Asharq Al-Awsat: Land Border Demarcation between Lebanon, Israel ‘is Within Reach’

AFP file photo of Amos Hochstein speaking to reporters at the Grand Serail in Beirut, Lebanon
AFP file photo of Amos Hochstein speaking to reporters at the Grand Serail in Beirut, Lebanon

The former US special envoy, Amos Hochstein, said the maritime border agreement struck between Lebanon and Israel in 2022 and the ceasefire deal reached between Israel and Hezbollah at the end of last year show that a land border demarcation “is within reach.”

“We can get to a deal but there has to be political willingness,” he said.

“The agreement of the maritime boundary was unique because we’d been trying to work on it for over 10 years,” Hochstein told Asharq Al-Awsat.

“I understood that a simple diplomatic push for a line was not going to work. It had to be a more complicated and comprehensive agreement. And there was a real threat that people didn’t realize that if we didn’t reach an agreement we would have ended up in a conflict - in a hot conflict - or war over resources.”

He said there is a possibility to reach a Lebanese-Israeli land border agreement because there’s a “provision that mandated the beginning of talks on the land boundary.”

“I believe with concerted effort they can be done quickly,” he said, adding: “It is within reach.”

Hochstein described communication with Hezbollah as “complicated,” saying “I never had only one interlocutor with Hezbollah .... and the first step is to do shuttle diplomacy between Lebanon, Lebanon and Lebanon, and then you had to go to Israel and do shuttle diplomacy between the different factions” there.

“The reality of today and the reality of 2022 are different. Hezbollah had a lock on the political system in Lebanon in the way it doesn’t today.”

North of Litani

The 2024 ceasefire agreement requires Israel to withdraw from Lebanon and for the Lebanese army to take full operational control of the south Litani region, all the way up to the border. It requires Hezbollah to demilitarize and move further north of the Litani region, he said.

“I don’t want to get into the details of other violations,” he said, but stated that the ceasefire works if both conditions are met.

Lebanon’s opportunity

“Lebanon can rewrite its future ... but it has to be a fundamental change,” he said.

“There is so much potential in Lebanon and if you can bring back opportunity and jobs - and through economic and legal reforms in the country - I think that the future is very bright,” Hochstein told Asharq Al-Awsat.

“Hezbollah is not trying to control the politics and remember that Hezbollah is just an arm of Iran” which “should not be imposing its political will in Lebanon, Israel should not be imposing its military will in Lebanon, Syria should not. No one should. This a moment for Lebanon to make decisions for itself,” he added.