Dear Readers,
Once launching on January 15th, 2018 the process of flexibilization of the Dirham, economic policy makers leave their comfort zone. Yet, the fixed exchange rate regime has helped to maintain a low inflation and has been a key factor for economic stability, a distinctive element for the Kingdom.
This approach adopted by the Moroccan authorities and encouraged by the IMF is rather rarely observed among emerging countries. The economies which decided on this flexibilization adopted it through coercion. Indeed, the abandonment of the fixed regime is source of uncertainty, hence a known phenomenon of fear of floating.
Enjoy reading,