Chapter

MOROCCO

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2004
Share
  • ShareShare
Show Summary Details
(Position as of February 29, 2004)
Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: January 21, 1993.
Exchange Arrangement
CurrencyThe currency of Morocco is the Moroccan dirham.
Other legal tenderCommemorative gold coins with a face value of DH 250 and DH 500, and commemorative silver coins with a face value of DH 50, DH 100, DH 150, and DH 200 are also legal tender.
Exchange rate structureUnitary.
Classification
Conventional pegged arrangementThe exchange rate is determined freely in the interbank foreign exchange market. Bank Al-Maghrib (BAM)—the central bank—intervenes continuously in the market during the day by setting the buying and selling rates applicable to its operations with banks, based on a basket of currencies weighted in accordance with the geographic distribution of Morocco’s foreign trade and the pattern of currencies of settlement. This quotation system is also based on the observance of the cross exchange rates in the international market. For exchange operations with customers, banks may not exceed the rate limits set by the BAM. Banks charge a commission of 0.2% on their foreign exchange transactions with customers.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketBanks may provide forward exchange contracts for commercial and financial operations for periods of up to 12 months.
Arrangements for Payments and Receipts
Prescription of currency requirementsAll transactions between Morocco and foreign countries—regardless of the type of transactions—must be settled in foreign currencies that are quoted by the BAM or in convertible dirhams.
Use of foreign exchange among residentsTransactions among residents must be denominated and settled in domestic currency.
Payments arrangements
Regional arrangementsThere are regional payments arrangements between the BAM and the central banks of Algeria, Libya, Mauritania, Morocco, and Tunisia.
Administration of controlExchange control is administered by the Foreign Exchange Office (FEO), an agency under the MOF. This office has delegated the execution of the main exchange control measures to authorized banks. Import and export licenses, which are required for some products, are issued by the Department of Foreign Trade (DFT).
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)In accordance with the relevant UN Security Council resolutions, prior FEO authorization is required to conduct financial transactions with listed individuals or entities associated with terrorism.
In accordance with UN sanctionsMorocco maintains restrictions against certain countries pursuant to UN Security Council resolutions.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)
Controls on domestic ownership and/or tradeResidents may purchase, hold, and sell gold coins in Morocco for numismatic or investment purposes. Ten different types of foreign gold coins are traded on the Casablanca Stock Exchange, which does not, however, deal in gold bars.
Controls on external tradeImports of gold are subject to authorization from the Customs and Indirect Taxes Administration. The MOF fixes annually a quota for the importation of gold ingots. The quota is then allocated among jewelers and industrial users of precious metals. Exports of gold are also regulated.
Controls on exports and imports of banknotes
On exports
Domestic currencyThe exportation of domestic banknotes is prohibited.
Foreign currencyForeign nationals visiting Morocco are permitted to repurchase foreign exchange on presentation of receipts indicating the amount of the original conversion of foreign exchange into dirhams. Residents may also export foreign banknotes within the limits specified in foreign exchange regulations.
On imports
Domestic currencyThe importation of domestic banknotes is prohibited.
Foreign currencyNonresident travelers may bring in freely foreign banknotes, traveler’s checks, and other means of payment denominated in foreign currency. Resident travelers may also import freely foreign banknotes or any other means of payment denominated in foreign exchange, but must surrender them for dirhams within 30 days of their return to Morocco.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyTwo types of account may be opened.
(1) Natural and juridical persons may open foreign currency accounts in Moroccan banks without restriction. These accounts may be credited with transfers from abroad, any foreign currency–denominated means of payment (e.g., banknotes or traveler’s checks), or foreign currency that was withdrawn from a Moroccan bank in accordance with current foreign exchange regulations. They may be debited for transfers abroad or for purchases of dirhams for all domestic settlements. There are no restrictions on the rate of interest payable on these accounts or on transfers between foreign currency accounts or between these accounts and convertible dirham accounts. Authorized banks may issue international credit cards to holders of these accounts. Overdrafts on these accounts are not permitted.
(2) Moroccan exporters of goods and services holding convertible export promotion accounts (CCPEX) are allowed to open foreign exchange accounts; those without a CCPEX must still obtain prior approval from the FEO. Up to 20% of foreign exchange receipts from exports may be credited to these accounts (fishing companies may credit up to 25%) and the remainder must be sold to Moroccan banks. Exporters’ foreign exchange accounts may also be credited without restriction with proceeds (principal and interest) from financial investments made from these accounts and with transfers from other foreign exchange accounts of the same account holder. These accounts may be debited for payment of business expenses, as provided for in the exchange regulations; for investments in authorized banks; for subscribing to bonds issued by the Moroccan Treasury; to credit another foreign exchange account or a CCPEX held in the name of the same account holder; and for the surrender of foreign currency to banks. Authorized banks may issue international credit cards to holders of these accounts. Overdrafts on these accounts are not permitted.
Approval requiredApproval is not required for foreign nationals.
Held abroadYes.
Approval requiredApproval is not required for foreign nationals.
Accounts in domestic currency held abroadn.a.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedTwo types of accounts may be opened.
(1) Foreign currency accounts in the names of foreign nationals may be maintained by nonresident natural or juridical persons of foreign nationality. These accounts may be credited with transfers from abroad; with foreign banknotes, checks, and traveler’s checks; with any other means of payment denominated in foreign currency; and with foreign currency withdrawn from domestic banks, in accordance with exchange regulations. They may be debited for transfers abroad or for the surrender of foreign currency for dirhams for all domestic settlements.
(2) Foreign currency accounts may be opened by Moroccan nationals residing abroad. These accounts may be credited with transfers from abroad, with traveler’s checks, banknotes, or any other means of payment denominated in foreign currency, and foreign currency withdrawn from domestic banks in accordance with exchange regulations. They may be debited for transfers abroad, and for the surrender of foreign currency for dirhams for all domestic settlements. There are no restrictions on the rate of interest payable on these two types of accounts or on transfers between foreign currency accounts, or between these accounts and convertible dirham accounts.
Domestic currency accountsThere are three types of accounts.
(1) Convertible in foreign currency dirham accounts are restricted to resident and nonresident natural and juridical persons of foreign nationality.
(2) Convertible dirham accounts may be opened freely in the name of Moroccans residing abroad. Both types of accounts may be credited with proceeds from the surrender of foreign currency and transfers from Morocco in accordance with current exchange regulations. They may be debited for the purchase of foreign currency and all domestic settlements. There are no restrictions on transfers between foreign accounts in convertible dirhams, or between these accounts and foreign currency accounts. Holders of these accounts may obtain international credit cards from authorized banks. Overdrafts are not allowed, and there are no restrictions on the interest rate payable.
(3) Nonresident foreign nationals not entitled to maintain convertible dirham accounts may open term convertible accounts. Funds in these accounts may be transferred within a maximum period of five years in annual installments of 20%. The holders of these accounts may debit them, without prior authorization from the FEO, to make payments for current expenses or investments in Morocco. Holders may also transfer account balances to resident or nonresident foreigners or to Moroccan nationals residing abroad. The recipients of the proceeds of these accounts may use them to cover certain expenses incurred in Morocco, including investment financing for up to 50% of the concerned investor’s share; the remainder must be financed with funds transferred from abroad.
Convertible into foreign currencyYes.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for imports
Advance payment requirementsImporters may make advance payments for imports of capital goods up to 40% of the f.o.b. value of the imports. In the case of spare parts, consumer goods, and samples, advance payment is limited to the foreign exchange equivalent of DH 20,000. Importers may make payment in advance of the due date under a contract in exchange for a discount of at least 3% from the foreign suppliers.
Documentation requirements for release of foreign exchange for importsExcept for goods imported by air, insurance policies for imports must be taken out with insurance companies in Morocco. For certain groups of goods, however, insurance policies may be underwritten abroad. This group includes (1) externally financed imports if the terms include foreign insurance; (2) capital goods and equipment under turnkey contracts; and (3) crude oil, gas, cattle, and wood.
Domiciliation requirementsFor all imports, a commercial security must be underwritten by the importer and domiciled at an authorized bank to cover eventual payment for goods and related services. This domiciliation is not required for imports that do not involve payments.
Import licenses and other nontariff measures
Positive listImports are not restricted, except for arms and explosives; secondhand clothing; chemical products that deplete the ozone layer; and wheels with used tires or retreads. These products require an import license issued by the DFT.
Negative listImports of products that affect public health, morals, order, or security may be prohibited.
Other nontariff measuresImports may be restricted for limited periods to protect infant industries or to countervail dumping. Tariff measures may be established for periods of five years to protect infant industries, and they may be extended to eight years. In the case of dumping, the product in question is subject to a prior import declaration for a maximum period of nine months and this measure is renewable once. During this period, investigations are carried out to determine whether or not dumping is taking place and, if it is, to determine what tariff measures are to be introduced.
Import taxes and/or tariffsCustoms duties are levied on an ad valorem basis. A large number of consumer goods not produced in Morocco are subject to a 10% duty. Imports of products to be used in the manufacture of goods for export are exempt from customs duties. Specific rates are applied to certain agricultural products.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsAll exporters must provide an export certificate guaranteeing repatriation and surrender of foreign exchange proceeds. Certain exports are exempt from this regulation. Proceeds from exports may be collected abroad and used directly to finance imports of goods and raw materials needed to manufacture goods for export.
Effective December 16, 2003, companies exporting clothing, household textile products, and related products may grant a price reduction to their foreign clients of up to 3% of the invoice price, provided payment is made during the repatriation period of export proceeds. The 3% reduction may be applied by the buyer against the payment due.
Surrender requirementsForeign exchange must be surrendered within one month of the date of payment by foreign buyers specified in the commercial contract. In principle, this date must not be more than 150 days from the date of the shipment of the goods. This deadline may be extended if warranted by business conditions and approved by the FEO. Exporters are authorized to maintain up to 20% of export earnings in convertible dirham or foreign exchange accounts.
Financing requirementsNo.
Documentation requirementsExporters must provide an export certificate guaranteeing repatriation and surrender of proceeds from their exports.
Preshipment inspectionPreshipment inspection is not required; however, exports of food products may be subject to quality control.
Export licenses
Without quotasExports of grain flour, charcoal, archaeological items, chemical products that deplete the ozone layer, and hides and skins require export licenses issued by the DFT.
Export taxesA tax of DH 34 a ton is levied on exports of phosphates. A 1% quality control tax is levied on exports of foodstuffs.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersAuthorized banks are permitted to provide foreign exchange—within specified limits, where applicable—for payments relating to international trade transactions, including transportation, services, technical assistance, income (including interest and dividends), and other current international transactions.
Trade-related paymentsPayments for freight, unloading, and storage are not restricted. Importers may pay for overweight freight charges in amounts not exceeding 10% of the amount initially stated in the commercial contract, as well as any penalty for the shipment. Effective November 19, 2003, representation and brokerage charges of exporters of goods or services (previously, exporters of goods only) may be settled for up to 10% of the value of exports of goods or services; this limit may be exceeded only when payment is made by debit to a CCPEX.
Indicative limits/bona fide testYes.
Investment-related paymentsIn general, there are no restrictions on the transfer of profits, dividends, and income from investments or interest on loans.
Indicative limits/bona fide testThere are indicative limits on transfers of interest, which must be market based.
Payments for travel
Quantitative limitsFor tourist travel, authorized banks may provide Moroccan or foreign nationals the equivalent of DH 15,000 a person a year. Effective November 10, 2003, this allowance is increased to DH 7,000 (previously, DH 5,000) for a minor child on the passport of the beneficiary parent when accompanying the parent at the time of travel abroad. For a given trip, the tourist allowance may be combined, in whole or in part, with any other foreign currency allowances granted under a general or special FEO authorization. The same allocation for tourist travel may also be granted to Moroccan nationals living abroad upon their return to Morocco, provided they have not benefited from the 15% allocation on remittances within the previous 12 months, up to a limit of DH 20,000. Residents of foreign nationality who wish to travel abroad may be granted the foreign exchange equivalent of all their income savings. Effective November 10, 2003, Moroccan or foreign nationals residing in Morocco and Moroccan nationals residing abroad are eligible for a foreign currency allowance equivalent to DH 14,000 for Umra (lesser pilgrimage) travel. Business travel by exporters of goods and services may be financed without restriction by debiting convertible export promotion accounts or foreign currency accounts maintained with Moroccan banks. In the case of business travel other than by exporters of goods and services, annual foreign exchange allowances are approved by the FEO on the basis of need, with a daily limit of DH 2,000. Banks have been authorized to provide allowances of up to DH 40,000 to small and medium-sized enterprises and of up to DH 20,000 a year for business travel by individuals not belonging to either of these categories. Larger allowances may be approved by the FEO on proof of need. The allowances for specific business travel may not be added to other allowances, except for the tourist allowance.
Indicative limits/bona fide testYes.
Personal paymentsTransfers for family maintenance and alimony payments require presentation of documentary evidence. Commercial banks are authorized to transfer retirement pensions provided by public and private agencies in favor of retirees residing abroad permanently.
Prior approvalApproval from the Ministry of Health is required to make transfers abroad for medical treatment when the patient is not covered by an insurance policy.
Quantitative limitsAuthorized banks may sell foreign exchange to Moroccan nationals for travel abroad for medical treatment up to a maximum of the equivalent of DH 30,000, and to make transfers on patients’ behalf for treatment abroad to hospitals and medical institutions concerned. Effective July 1, 2003, the power to authorize transfer for studies abroad was delegated to banks. Transfers for study abroad are authorized as follows: (1) an annual installation allowance equivalent to DH 20,000 and the same amount for a person accompanying a minor student leaving Morocco for the first time; (2) school fees to foreign academic institutions, in unlimited amounts, upon presentation of supporting documents; (3) allowances for living expenses amounting to (i) the equivalent of DH 7,000 a month for nonscholarship holders; (ii) DH 7,000 a month less the amount of the scholarship for scholarship holders; (iii) expenses required for boarding school plus DH 2,500 a month for school fees; and (iv) for students in the United States, the sum for tuition fees and living expenses stated in U.S. immigration documents; (4) payments of rent and corresponding charges to a foreign landlord upon presentation of a lease and a certificate of residence or other equivalent document; (5) the purchase price of a computer, up to DH 25,000 for a three-year period; and (6) repayments of student loans contracted with foreign banks. Banks are authorized to sell foreign exchange to public officials and staff of international institutions for training and missions abroad and to medical staff in governmental institutions for attendance at professional events abroad. Effective August 22, 2003, banks may transfer funds to cover emigration processing costs. In addition, emigrants who have obtained a visa may purchase up to the equivalent of DH 25,000 for moving expenses.
Indicative limits/bona fide testRequests for additional amounts require FEO approval, which is granted upon presentation of supporting documents.
Foreign workers’ wages
Quantitative limitsForeign nationals residing in Morocco and employed in either the private or public sectors or engaged in professions in industry, commerce, or agriculture may transfer all their income. They may also contribute freely to pension or social security funds in their countries of origin. These arrangements apply equally to foreign spouses of Moroccan nationals.
Commercial banks may transfer pensions paid by government or private organizations to retired individuals residing permanently abroad. In addition, retired foreign nationals and foreign spouses of Moroccan nationals may transfer their entire pensions.
Credit card use abroad
Prior approvalBanks may issue credit cards without restriction to (1) foreign nationals holding accounts in foreign currency or convertible dirhams; (2) staff of international organizations that have offices or headquarters in Morocco; (3) Moroccan nationals residing abroad who hold accounts in convertible dirhams or in foreign exchange; (4) exporters of foods or services who hold foreign currency accounts or a CCPEX; (5) economic operators, other than exporters of goods and services, who have a foreign currency allowance as specified in foreign exchange regulations; and (6) effective February 17, 2004, Moroccan and foreign nationals residing in Morocco and Moroccan nationals residing abroad who have foreign currency allowances through a general or specific authorization from the FEO.
Quantitative limitsThe limit is the amount of funds in the beneficiary’s account and the authorized foreign currency allowance.
Indicative limits/bona fide testYes.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsResidents of Moroccan nationality must repatriate foreign exchange receipts accruing from all their claims on nonresidents and sell them on the foreign exchange market. Resident foreign nationals must repatriate only those foreign exchange receipts that result from their activities in Morocco. Repatriation must take place within one month of the date of the claim.
Effective October 30, 2003, sales of goods and services by a foreign supplier to a foreign client that are arranged by Moroccan entities must have a profit margin of at least 10%, and the proceeds from the sale must be repatriated.
Surrender requirementsExporters of goods and services may keep up to 20% of their foreign exchange receipts in foreign currency or convertible dirham accounts.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital transactionsYes.
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Sale or issue locally by nonresidentsThe issue of capital market securities by nonresidents is prohibited. There are, however, no restrictions on the sale of Moroccan securities by nonresidents. Proceeds from such sales may be transferred freely, provided that the relevant purchases are financed by foreign exchange inflows or other comparable means. In other cases, the proceeds must be deposited in a convertible dirham account and may be transferred abroad over a five-year period.
Purchase abroad by residentsPurchases of foreign securities by residents of Moroccan nationality and transfers of the funds required for such purchases are subject to the prior approval of the FEO. Authorized intermediary banks may place foreign currency with correspondent banks abroad and may acquire sovereign securities issued by international financial institutions. Residents of foreign nationality are free to purchase securities abroad, provided that these purchases are financed from their foreign exchange holdings abroad or from their foreign currency accounts or convertible dirham accounts.
Sale or issue abroad by residentsThese transactions are subject to prior FEO authorization.
Bonds or other debt securitiesThe regulations governing shares or other securities of a participating nature apply.
On money market instruments
Sale or issue locally by nonresidentsThe issue of these instruments by nonresidents is prohibited.
Purchase abroad by residentsPurchases by Moroccan nationals require prior FEO authorization. Residents of foreign nationality are free to engage in these transactions, provided they are financed with their own foreign exchange holdings.
Sale or issue abroad by residentsThese transactions require prior FEO authorization.
On collective investment securitiesThe regulations governing money market instruments apply.
Controls on derivatives and other instruments
Purchase locally by nonresidentsThese instruments have not yet been developed in Morocco.
Sale or issue locally by nonresidentsThese instruments have not yet been developed in Morocco.
Purchase abroad by residentsEffective January 13, 2004, economic agents may acquire hedging instruments through authorized banks against price fluctuations for certain basic agricultural, mining, or energy products. These instruments may be traded on a secondary market.
Sale or issue abroad by residentsThese transactions are subject to prior approval by the FEO.
Controls on credit operations
Commercial credits
By residents to nonresidentsMerchandise exporters are free to extend commercial credits to nonresidents for up to 150 days. Credits with longer terms may be extended with FEO approval, if justified on the basis of commercial necessity.
Financial credits
By residents to nonresidentsThese transactions are subject to FEO approval. Local banks may extend loans in dirhams to nonresidents for the purchase or development of Moroccan real estate, up to 70% of the value of the real estate to be purchased or developed; these loans must be serviced with funds transferred from abroad or with debits from convertible dirham accounts.
To residents from nonresidentsMoroccan enterprises may obtain loans abroad without limitation, provided that these are used to finance investment or foreign trade. Repayments from Morocco must be made through the banking system.
Guarantees, sureties, and financial backup facilities
By residents to nonresidentsMoroccan banks may issue or accept, in favor of residents, sureties issued on behalf of nonresidents in support of the participation of these nonresidents in markets abroad (the supplying of goods or services), the refund of down payments received from foreign customers, and the guarantee of loans or any other financial instruments mobilized in accordance with foreign exchange regulations.
To residents from nonresidentsMoroccan banks may issue or accept, in favor of residents, sureties issued on behalf of nonresidents in support of the participation of these nonresidents in public or private contracting, supplying of goods or services, and the refund of down payments. They may also issue sureties on behalf of nonresidents in settlement of tax liabilities or financial obligations. A counterguarantee from a foreign bank is required for sureties issued by Moroccan banks on behalf of nonresidents. When claims are entered under sureties issued or accepted in favor of residents on behalf of nonresidents, the relevant amounts must be repatriated to Morocco.
Controls on direct investment
Outward direct investmentOutward direct investments are subject to prior approval of the FEO, but residents of foreign nationality are free to invest abroad, provided that the operations are financed from their own assets abroad or from their holdings denominated in convertible dirhams or foreign currency.
Controls on liquidation of direct investmentThere are no controls on transfers made directly through the banking system of the proceeds of the liquidation or sale of foreign investments, including capital gains when such investment is governed by the convertibility arrangement (financing by sale of foreign exchange or other comparable methods). For the liquidation of any investment not falling under this category, the relevant proceeds must be deposited in a convertible time deposit account denominated in dirhams. Funds placed therein may be used in Morocco or transferred over a five-year period in equal annuities.
Controls on real estate transactionsThese operations are subject to the investment regime.
Purchase abroad by residentsPurchases of real estate abroad by Moroccan nationals require prior FEO authorization.
Purchase locally by nonresidentsForeign nationals may purchase real estate, except farmland, with funds from foreign exchange accounts.
Controls on personal capital transactions
Loans
By residents to nonresidentsThese operations are subject to FEO approval. However, Moroccan banks may grant loans to foreign individuals for the purchase or development of real estate in Morocco up to 70% of the value of the real estate to be purchased or developed.
To residents from nonresidentsThese operations are subject to FEO approval.
Gifts, endowments, inheritances, and legacies
By residents to nonresidentsGifts and endowments are subject to prior FEO authorization; transfers of inheritance may be effected freely if the inherited property is subject to convertibility arrangements or under arrangements made before departure, if such transfers have not been already used by the deceased.
Settlement of debts abroad by immigrantsThese operations are unrestricted, provided they are financed from the foreign assets of the parties concerned or from their assets in foreign currency or in convertible dirhams.
Transfer of assets
Transfer abroad by emigrantsUpon departure from Morocco, foreign nationals may transfer those assets not subject to the convertibility arrangement for amounts up to DH 25,000 or the equivalent for each year they were in Morocco.
Transfer of gambling and prize earningsThese earnings are transferable, provided that the gambling was financed with foreign currency.
Provisions specific to commercial banks and other credit institutions
Borrowing abroadCommercial banks may borrow abroad only to finance foreign trade or investment operations on behalf of customers.
Maintenance of accounts abroadBanks may open and maintain accounts abroad to effect payments and to manage hedging operations against price fluctuation risk on certain basic products.
Lending to nonresidents (financial or commercial credits)Lending by Moroccan banks is subject to FEO approval. However, banks may grant loans to nonresident foreign individuals for purchases or development of real estate in Morocco, up to 70% of the value of the real estate. Banks may use available cash held in foreign exchange accounts (by foreign nationals, Moroccan citizens residing abroad, and exporters) to provide credits to foreign customers to finance Moroccan exports.
Lending locally in foreign exchangeFEO approval is required for these operations.
Purchase of locally issued securities denominated in foreign exchangeThese transactions are subject to prior FEO approval.
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsConvertible dirham and foreign exchange accounts are excluded from reserve requirements.
Differential treatment of deposit accounts held by nonresidents
Credit controlsAn overdraft position is not permitted in foreign exchange accounts.
Investment regulations
Abroad by banksThese operations are subject to approval by the FEO and the monetary authorities. Authorized intermediary banks may undertake foreign exchange investments with counterparts abroad and may purchase sovereign bonds and securities issued by international financial institutions.
In banks by nonresidentsThese operations are subject to approval by the monetary authorities.
Open foreign exchange position limitsThe open foreign exchange position limit for each currency is 10% of net capital and 20% in aggregate for all currencies.
On resident assets and liabilitiesThe assets and liabilities of these accounts are included in the calculation of banks’ foreign exchange positions.
On nonresident assets and liabilitiesThe assets and liabilities of these accounts are included in the calculation of banks’ foreign exchange positions.
Provisions specific to institutional investorsNo.
Other controls imposed by securities lawsn.a.
Changes During 2003
Exports and export proceedsDecember 16. Companies exporting clothing, household textile products, and related products were permitted to grant a price reduction to foreign importers of up to 3% of the invoice price, provided payment is made during the period for the repatriation of export proceeds.
Payments for invisible transactions and current transfersJuly 1. The authority to approve applications for foreign exchange for studies abroad was delegated to banks.
August 22. Authorized banks were permitted to transfer funds to foreign government agencies to cover emigration processing costs.
August 22. Banks were permitted to extend a foreign currency allowance up to the equivalent of DH 25,000 for moving expenses.
November 10. The tourist allowance for a minor child included on the passport of a parent when accompanying that parent was increased to DH 7,000 from DH 5,000.
November 10. Authorized banks were permitted to provide resident and nonresident Moroccans a foreign exchange allowance of up to the equivalent of DH 14,000 to cover expenses for Umra (lesser pilgrimage) travel.
November 19. Exporters of services were permitted to transfer settlements of representation and brokerage charges up to 10% of the proceeds of services exports. Previously, only exporters of goods were permitted to do so.
Proceeds from invisible transactions and current transfersOctober 30. Proceeds from sales of goods and services by a foreign supplier to a foreign client that are arranged by a Moroccan entity were required to be repatriated and the profit margin on the sale was required to be at least 10%.
Changes During 2004
Payments for invisible transactions and current transfersFebruary 17. Banks were authorized to issue credit cards to Moroccan and foreign nationals residing in Morocco and Moroccan nationals residing abroad who have foreign currency allowances through a general or specific authorization from the FEO.
Capital transactions
Controls on derivatives and other instrumentsJanuary 13. Economic agents were permitted to acquire hedging instruments through authorized banks against price fluctuations for certain basic agricultural, mining, or energy products.

    Other Resources Citing This Publication