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.