The International Monetary Fund (IMF) said Morocco is ready to start floating its currency, local media reported on Tuesday.
In June, the country’s central bank announced Morocco will start the first step of floating Dirham, Morocco’s official currency, in early July.
“Morocco has been ready, as we’ve already said. It’s a sovereign and voluntary decision the Moroccan authorities have taken as part of a long process of integrating the country into the world economy,” the Moroccan financial daily l’Economiste quoted Nicolas Blancher, head of mission for Morocco in the IMF’s Middle East and Central Asia Department, as saying. “We don’t see any big exposure to risk,” he noted.
The Moroccan government has said studies are being carried out to ensure enough time for the decision to take effect.
Currently, the Dirham is fixed via a peg that is 60 percent weighted to the euro and 40 percent to the U.S. dollar.
The first stage will ease that peg to allow the currency to trade in a narrow range, which will expand gradually over a few years.