Moroccan banks have suspended purchases of euros after being overwhelmed by a wave of foreign currency inflows, according to financial sources familiar with the matter who spoke to Hespress AR.
Record remittances from the Moroccan diaspora, a rebound in tourism, and strong export receipts have produced an unprecedented surplus that trading rooms say they can no longer absorb.
The paralysis reflects the limits of Morocco’s current exchange-rate regime. The dirham is allowed to fluctuate within a band of plus or minus 5 percent against a basket composed of 60 percent euro and 40 percent dollar.
With the euro nearing the lower end of this band, banks fear losses if forced to resell excess currency at a weaker price.
Unlike in 2021 and 2022, when Bank al-Maghrib intervened to absorb euro surpluses, the central bank has so far refused to step in. The interbank market has repeatedly seized up, with no transactions recorded as banks wait for the exchange rate to adjust.
The glut has ripple effects beyond financial institutions. Exporters, especially in automotive and agriculture, welcome the stronger dirham because it reduces the cost of imported components and inputs.
Importers, however, fear that persistent rigidity could make hedging difficult and disrupt payment cycles.
Central bank governor Abdellatif Jouahri recently confirmed that Morocco will advance toward a fully flexible exchange rate beginning in January 2027. At that point, the dirham will no longer be tied to the euro-dollar basket but will float freely, guided by an inflation-targeting framework anchored in interest rates and monetary tools.
Since 2018, Morocco has widened the fluctuation band from 0.3 percent to the current 5 percent.
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