On Monday, the national currency, the dirham, entered a second new stage in liberalizing its exchange rate, moving from a 2.5 per cent to 5 per cent move range.

The Ministry of Economy, Finance, and Administration and Central Bank Reform announced this decision last Friday, and it came into effect on Monday, noting that this stage is part of a gradual currency reform process.

In January 2018, Morocco had begun to expand the volatility of the dirham exchange rate by raising it to 2.5 per cent, after its range over decades was limited to 0.3 per cent.

The central exchange rate is determined by Bank Al-Maghrib on the basis of a basket of currencies, consisting of the euro and the US dollar, at 60 percent and 40 percent, respectively.

The Ministry of Economy stressed that the new stage of currency reform comes in favorable conditions in terms of hard currency reserves, a controlled level of inflation, the sustainability of public debt, and the solidity of the financial sector.

According to the government, the first stage in which the dirham moved within the range of 2.5 per cent within two years reached the goals set for it, without indicating a clear outcome on the subject.

Idriss El Fina, a university professor at the National Institute of Statistics and Applied Economics in Rabat, said that Morocco has adopted workshops on overhauling the drainage system to make it more flexible from the start in 2018 by progressively implementing the flotation process to avoid all possible slippages.

In an interview with Hespress, Elvina pointed out that "the evaluation of the previous stage shows that there is no effect of this measure, neither on the level of inflation, nor on the balance of the trade balance, nor the balance of the current account, nor the volume of foreign investment, nor the stock of the hard currency."

The economist added: "The first stage allowed the building of the legal base and the development of mechanisms on the basis of which this workshop will be implemented, especially allowing the banking system to put in place all the mechanisms that allow it to deal with this new situation in terms of managing supply and demand of hard currency without slippage as happened when The launch of this workshop. "

The spokesman said that Morocco inaugurated today a new stage in reforming the exchange system for its currency by expanding the field of dirham change, considering that "this measure will also have very limited effects on the above variables."

In the view of Vienna, "Bank Al-Maghrib has been leading a very conservative monetary policy for some time, which appears through the statements of the Governor of Bank Al-Maghrib, and that the exchange reform workshops are proceeding very slowly, which wastes great opportunities for economic growth on Morocco."

The expansion of the Moroccan dirham's movement coincides with a hazy circumstance at the global level, especially in light of the impact of the emerging Corona virus on the economies of the entire world, and Morocco has been affected as well.

And Vienna believes that Morocco is exposed to new dangers because of the new Corona, which has produced a change in international policies at the level of trade exchange with China, the epicenter of the epidemic, and other countries led by the European Union and the United States of America.