IMPACT DU TAUX DE CHANGE SUR LA CROISSANCE ECONOMIQUE AU MAROC

Abstract

Morocco has portrayed a wider currency fluctuation band of +/- 2.5% within a fixed price. Through this, its economy indicates a shift towards a pliant exchange rate regime. Because of the shift, the country’s economy will acquire a macroeconomic tool that will function as a shock absorber while allowing faster alteration at a lower cost. On the contrary, the lack of this sort of tool may require a contraction in demand that can help restore external balances. Regardless of its possibilities, restoring external balances results in a cyclical slowdown in growth. This indicates that managing a flexible exchange rate regime requires numerous actions. Therefore, the most significant step taken is widening the fluctuation bands. This makes the central bank a backbone since it plays a significant role in smoothing out exchange rate swings.

For the economic state of Morocco, the Moroccan data is compared to that of Dirhams’ real exchange rate concerning the long-term connection with its essentials. The comparisons are made by viewing the terms of trade, government spending, GDP growth rate, trade policy, foreign capital flow and Gross Fixed Capital Formation between 2013 and 2020. Besides, this study examines the impact of remittances and their consequences on economic policy.