Morocco’s economy is likely to grow by 6.6 percent in the first quarter, according to government figures recently released. This good news comes on the back of an IMF report highlighting Morocco’s impressive economic performance in 2008.
The International Monetary Fund stated that due to the sound financial sector in the country it was well placed to continue its progress. The exchange rate peg (Dirham to euro and dollar), according to the IMF, has served as an anchor of macro-economic stability, and its level appears broadly in line with fundamentals required to maintain economic performance.
Indeed, the Moroccan banks are now generally well-provisioned and have little in the way of foreign exposure on either the asset or the liability side, minimizing the transmission of risks from global financial markets to the real economy, and making the banking system resilient to shocks. Moroccan banks are not exposed to the kind of products at the heart of the subprime crisis and are in a strong position after years of improving results. Whilst the central Bank Al-Maghrib (now autonomous from government) works to control money supply and credit and so also plays a crucial role in controlling inflation.