Morocco's forex reserves shrink 4.9 pct in March

RABAT, April 6 (Xinhua) -- Morocco's foreign exchange reserves stood at 23.1 billion U.S. dollars by the end of March, shrinking 4.9 percent year-on-year, Morocco's Central Bank said Friday.

According to a weekly statement by the central bank, the decline has continued since the country started the gradual floating of its currency.

Morocco's dirham increased 0.23 percent against euro and dropped 0.59 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