Morocco will gradually change the exchange rate regime from 2026 and separate the dirham from the euro and the dollar.

Main restaurants

• The Moroccan central bank will gradually change the exchange rate regime from 2026. This will cause the dirham to start moving from the current peg, which is currently a combination of the euro and the US dollar.
• A comprehensive plan is being developed to ensure a smooth transition for regulators and market participants.
• Market-driven funding is the ultimate goal, but the process will be gradual to allow smaller companies to adapt.

Morocco’s central bank governor revealed that the country plans to gradually change its exchange rate regime from 2026. This will gradually move the dirham from its current peg, which is currently a mix of the euro and US dollars. The governor said that both the central bank and financial institutions are ready for this move and that governors are actively working on a comprehensive plan.

The move to a more flexible currency was initially initiated in 2018, but was halted due to factors such as an economic slowdown, a decline in tourism due to the pandemic, a recurring drought, a decline in support from Gulf Arab states and rising energy costs. Although the ultimate goal is a market-driven currency, the governor emphasized the need for a gradual approach to allow market participants, especially smaller businesses that are vital to the Moroccan economy , change.

Financial reforms

In addition to exchange rate reform, authorities are considering issuing at least $1 billion in Eurobonds by early 2025. The governor is setting Bloomberg However, we recommend postponing this issue until early next year due to global uncertainty surrounding the US presidential elections and their potential impact on Middle East policy.

In addition, Morocco plans to establish a currency swap market and introduce derivatives trading in 2024 as part of its broader financial market development strategy.

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