Morocco to launch flexible exchange rate for dirham on Monday


Morocco to launch more flexible exchange rate for dirham on Monday

RABAT/DUBAI, Jan 12 (Reuters) - Morocco will introduce a more flexible exchange rate system for the dirham currency on Monday, the government said on Friday.

The fluctuation band in which the dirham is traded against hard currencies will be widened from 0.3 percent either side of the previous day's close to 2.5 percent either side, giving a 5 percent range in total, the government said in a statement, confirming what sources had told Reuters earlier.

The move should give the Moroccan economy greater protection from external shocks, it added.

The Moroccan dirham is pegged most closely to the euro, but as a step towards greater flexibility the central bank has reduced the euro weighting of the exchange rate to 60 percent from 80 percent and raised the U.S. dollar weighting to 40 percent from 20 percent.

This article appears in: Politics , World Markets , Stocks , Economy

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