IMF hails Morocco's improvement in exchange rate flexibility

RABAT, Jan. 20 (Xinhua) -- The International Monetary Fund (IMF) said that Morocco's recent introduction of greater exchange rate flexibility would help improve the nation's external position, local media reported on Saturday.

The move will enhance the country's capacity of absorbing impacts and preserving its external competitiveness, IMF was quoted as saying by Medias24.com financial news.

Morocco started on Monday the gradual floating of its currency, raising the official band of dirham's fluctuation to 2.5 percent above or below the official rate from the previous 0.3 percent.

IMF hailed Morocco's sound macroeconomic policies and reform implementation, which have helped improve the resilience of the economy, according to the report.

Growth rebounded in 2017 and is expected to accelerate gradually over the medium term, contingent on improved external conditions and steadfast reform implementation, it added.

The statement was issued after the Executive Board of the IMF completed the final review under the Precautionary and Liquidity Line (PLL) arrangement for Morocco.

The board approved in July 2016 a two-year PLL arrangement for Morocco worth nearly 3.61 billion U.S. dollars.

The Moroccan authorities have not drawn on the arrangement, which is expected to expire in July 2018, and continued to treat it as precautionary.

This PLL arrangement is the third in a row that Morocco has signed with IMF. Morocco's first PLL arrangement of 6.21 billion dollars was approved in August 2012, while the 24-month second one of about 5 billion dollars was in July 2014.

A few months before the expiry of the latest PLL arrangement, the Moroccan news site said the negotiation of a new deal is "feasible," citing official sources. Enditem