Morocco's forex reserves shrink 5 pct in April

RABAT, May 5 (Xinhua) -- Morocco's foreign exchange reserves stood at 24.5 billion U.S. dollars by the end of April, shrinking 5 percent year-on-year, Morocco's Central Bank said Saturday.

According to the central bank, the decline has continued since the country started the gradual floating of its currency in mid-January. Morocco's dirham increased 0.59 percent against euro and dropped 0.68 percent against U.S. dollar compared to one 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