Morocco's forex reserves shrink 3.2 pct in January

RABAT, Feb. 3 (Xinhua) -- Morocco's foreign exchange reserves stood at 26.3 billion U.S. dollars by the end of January, shrinking 3.2 percent year-on-year, Morocco's Central Bank said Saturday.

According to a statement by the central bank, the exchange reserves remained at almost the same level compared to a week earlier.

Morocco's dirham dropped 0.43 percent against euro and increased 0.54 percent against U.S. dollar compared to a year ago.

Such performance shows the dirham fluctuates within a very narrow trading band despite Morocco's decision to raise the official band of dirham's fluctuation to 2.5 percent above or below the official rate from the previous 0.3 percent.

The dirham is pegged to a two-currency basket weighted 60 percent to the euro and 40 percent to the U.S. dollar.

The authorities said widening the dirham trading band is part of a broader plan to float the currency and make the economy more resilient against external shocks and help boost growth. Enditem