Moroccan Dirham

• Bank Al-Maghrib (BKAM, the central bank of Morocco) sustains a regime whereby the value of the dirham is guaranteed a certain degree of stability by remaining pegged to the currencies of Morocco’s main trading partners. Since 2015, the basket consists of 60% EUR and 40% USD.
• Bank Al-Maghrib’s primary objective is the achievement of price stability, allowing for moderate evolutions therein. This is achieved through proactive monetary policy with regard to liquidity and interest rates, as well as the controlled fluctuation of MAD.

There is a market for MAD in foreign exchange (deliverable). Liquidity is quite scarce.FX forwards are possible, but also in limited liquidity. In both the spot and forward markets, liquidity is better for clients seeking to buy MAD.

BKAM manages the value of its currency against a basket composed of 60% EUR and 40% USD. Based on this value, they indicate quotes for MAD against 16 other currencies. This implies that the currency is relatively stable against most major currencies and doesn’t behave like a typical “emerging market” currency, which tend to exhibit high rates of volatility.The rate is managed within a band around the desired level. The upper and lower limits allowed by BKAM are indicated on their website.

In general, there are no special restrictions on the purchase and sale of MAD.