Morocco to adopt flexible currency exchange

Morocco will consider adopting a more flexible currency exchange system, according the country's central bank governor.

Abdellatif Jouahri told a reporter from Reuters that the country will need to look at a different system as its trade with foreign markets increases.

The country currently has a controlled foreign exchange system and its currency, the dirham, is not fully convertible.

Mr Jouahri told Reuters: "We are mulling over a plan to expand the flexibility of our current exchange regime. Morocco is increasingly opening up to the outside world, and we need to adapt to this expanded openness."

Morocco has recently lost some of its foreign export due to poor exchange rates with Europe during the global recession.

However, Mr Jouahri said that while a more flexible exchange system was being considered, the country would not be devaluing the dirham in order to boost immediate exports.

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Posted by Chris Barber