Bank al-Maghrib: No Concerns With Morocco’s Financial Stability

Rabat – Morocco’s central bank, Bank al-Maghrib, has said that it has no “particular concerns” over Morocco’s financial stability, despite the economic repercussions of the COVID-19 crisis.  A recent report from Bank al-Maghrib, the Supervisory Authority of Insurance and Social Welfare (ACAPS), and the Moroccan Capital Market Authority (AMMC) details the state of Morocco’s financial […] The post Bank al-Maghrib: No Concerns With Morocco’s Financial Stability appeared first on Morocco World News.

Bank al-Maghrib: No Concerns With Morocco’s Financial Stability
Rabat – Morocco’s central bank, Bank al-Maghrib, has said that it has no “particular concerns” over Morocco’s financial stability, despite the economic repercussions of the COVID-19 crisis.  A recent report from Bank al-Maghrib, the Supervisory Authority of Insurance and Social Welfare (ACAPS), and the Moroccan Capital Market Authority (AMMC) details the state of Morocco’s financial systems amid the pandemic. “So far, the monitoring carried out has not revealed any particular concerns about the stability of the national financial system,” the report states, as quoted by Morocco’s state media. “The advent of the COVID-19 crisis and its impact on the national economy required an unprecedented mobilization of all actors in the public and private sphere,” the report adds. The first objective of Morocco’s public and financial authorities was to support the national economy during the lockdown, according to the same source. They worked to stifle the pandemic’s blows to household income and national production. The report underlines that Morocco’s financial authorities have coordinated to monitor risk indicators and provide appropriate and proportionate responses to COVID-19’s impacts on the country’s financial stability. Bank al-Maghrib adds in the report that as Morocco eased lockdown measures, financial authorities shifted focus to assist the recovery of production and closely monitor the evolution of the still-uncertain economic situation.  As Morocco’s financial authorities continue to monitor potential changes in the country’s financial stability, the Systemic Risks Coordination and Monitoring Committee (CCSRS) has decided to maintain weekly meetings. Morocco’s COVID-19 economic crisis The Bank al-Maghrib report is one of the less pessimistic outlooks on Morocco’s economic situation amid the COVID-19 crisis.  The General Treasury of Morocco recorded a budget deficit of $3 billion for the first half of 2020. Meanwhile, remittances from Moroccans residing abroad and income from tourism and foreign investments sharply declined. Morocco’s Minister of Economy Mohamed Benchaaboun warned on July 23 that the country should brace for the economic shocks of COVID-19, drought, and a global recession.  He added that Morocco’s economic growth is expected to slow by 5% in 2020 for the first time since the end of the 1990s. Benchaaboun also predicts the budget deficit will stand at 7.5% and the debt ratio at 75.5% of GDP in 2020. Morocco’s Ministry of Labor forecasts a loss of 712,000 jobs and an unemployment rate of 14.8% in 2020. In May, the country’s unemployment rate reached 10.5%, with 1.292 million people out of work. Morocco has taken numerous actions to preserve the country’s financial stability during the crisis. These actions include distributing aid to families without work, approving amendments to the 2020 Finance Bill, and developing sectoral recovery plans.  Notably, King Mohammed VI announced in his Throne Day speech on July 29 a $12.84 billion stimulus package to support the national economy. In addition, the King called for the generalization of social security to cover all Moroccans.  While Morocco is already facing micro and macroeconomic shocks due to COVID-19, the country’s top financial authorities are confident in the preservation of overall stability.  Read also: Economy Minister Details Morocco’s MAD 120 Billion Stimulus Package The post Bank al-Maghrib: No Concerns With Morocco’s Financial Stability appeared first on Morocco World News.