Abstract
MOROCCO
Title Page
MOROCCO
STAFF REPORT FOR THE 2022 ARTICLE IV CONSULTATION— INFORMATIONAL ANNEX
December 16, 2022
Prepared By
The Middle East and Central Asia Department (in consultation with other departments)
Contents
RELATIONS WITH THE FUND
RELATIONS WITH THE WORLD BANK GROUP
STATISTICAL ISSUES
Relations with the Fund
(As of October 31, 2022)
Membership Status
Joined April 25, 1958; Article VIII
General Resources Account
| SDR Million | Percent Quota | |
| Quota | 894.40 | 100.00 |
| Fund holdings of currency | 2,246.91 | 251.22 |
| Reserve position in Fund | 147.35 | 16.47 |
| SDR Million | Percent Quota | |
| Quota | 894.40 | 100.00 |
| Fund holdings of currency | 2,246.91 | 251.22 |
| Reserve position in Fund | 147.35 | 16.47 |
SDR Department
| SDR Million | Percent Allocation | |
| Net cumulative allocation | 1,418.66 | 100.00 |
| Holdings | 1,447.92 | 102.06 |
| SDR Million | Percent Allocation | |
| Net cumulative allocation | 1,418.66 | 100.00 |
| Holdings | 1,447.92 | 102.06 |
Outstanding Purchases and Loans
| SDR Million | Percent Allocation | |
| Precautionary and Liquidity Line | 1,499.80 | 167.69 |
| SDR Million | Percent Allocation | |
| Precautionary and Liquidity Line | 1,499.80 | 167.69 |
Latest Financial Arrangements (In millions of SDR)
| Type | Date of arrangement | Expiration Date | Amount Approved | Amount Drawn |
| Precautionary and Liquidity Line | 12/17/2018 | 04/07/2020 | 2,150.80 | 2,150.80 |
| Precautionary and Liquidity Line | 07/22/2016 | 07/21/2018 | 2,50400 | 0.00 |
| Precautionary and Liquidity Line | 07/28/2014 | 07/21/2016 | 3,235.10 | 0.00 |
| Type | Date of arrangement | Expiration Date | Amount Approved | Amount Drawn |
| Precautionary and Liquidity Line | 12/17/2018 | 04/07/2020 | 2,150.80 | 2,150.80 |
| Precautionary and Liquidity Line | 07/22/2016 | 07/21/2018 | 2,50400 | 0.00 |
| Precautionary and Liquidity Line | 07/28/2014 | 07/21/2016 | 3,235.10 | 0.00 |
Projected Payments to Fund
(SDR million; based on existing use of resources and present holdings of SDR):
| 2022 | 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|---|
| Principal | 962.10 | 537.70 | |||
| Charges/interest | 10.76 | 52.26 | 38.77 | 5.76 | 0.02 |
| Total | 10.76 | 52.26 | 1,000.87 | 543.46 | 0.02 |
| 2022 | 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|---|
| Principal | 962.10 | 537.70 | |||
| Charges/interest | 10.76 | 52.26 | 38.77 | 5.76 | 0.02 |
| Total | 10.76 | 52.26 | 1,000.87 | 543.46 | 0.02 |
Exchange Rate Arrangement and Exchange System
Morocco’s de jure exchange rate system is a pegged exchange rate within horizontal bands. In January 15, 2018, Bank Al-Maghrib (BAM) announced the widening of the dirham fluctuation band to ±2.5 percent (from ±0.3 percent) on either side of a reference parity, based on a Euro/US dollar basket with respective weights of 60 and 40 percent. As part of a gradual and orderly transition to a more flexible exchange rate regime, the authorities further broadened the dirham’s fluctuation band to ±5 percent on March 6, 2020. Accordingly, the de facto exchange rate arrangement has been reclassified to a pegged exchange rate within horizontal bands from stabilized exchange rate, effective March 24, 2020.
BAM intervenes in the market to maintain the exchange rate within its target range, defined around a fixed central rate. Rates for most currencies quoted in Morocco are established based on the daily dirham-euro rate and the cross rates for those currencies in relation to the euro in the international exchange markets. Morocco’s exchange system is free of multiple currency practices and restrictions on payments and transfers for current international transactions, except for restrictions that Morocco maintains solely for the preservation of national or international security and have been notified to the Fund pursuant to Executive Board Decision 144 (52/51). Capital controls are currently in place in Morocco, but are in the process of being loosened (e.g. lower surrender requirements for exports and higher ceilings for direct investments of residents, particularly for investments in Africa and in the financial sector). As of November 21, 2022, the USD/dirham exchange rate was USD 1=DH 10.72080.
Article IV Consultation
Morocco is on the standard 12-month cycle. The last Article IV consultation was concluded by the Executive Board on February 2, 2022, on a lapse-of-time basis. The discussions for the 2022 consultation were held during October 24–November 4, 2022.
Technical Assistance
| FAD | Revenue Administration Gap Analysis Program | September 17–22, 2018 |
| STA | Government Finance Statistics | September 24-October 5, 2018 |
| STA | Financial Sector Indicators | October 15–26, 2018 |
| FAD | Public Corporations Fiscal Risks Management | October 22–November 5, 2018 |
| STA | Government Finance Statistics | February 14–20, 2019 |
| MCM | Systemic Risk Monitoring – Stress Testing | February 21–March 1, 2019 |
| STA | Government Finance Statistics | April 1–12, 2019 |
| MCM | Macroprudential Policy | April 23–May 2, 2019 |
| METAC | National Accounts and Price Statistics | June 10–11, 2020 |
| FAD | Tax Administration and Medium-Term Revenue Strategy | November 12– 25, 2019 |
| METAC | Internal Capital Adequacy Assessment Process (ICAAP) | January 20–24, 2020 |
| STA | External Sector Statistics | January 20–30, 2020 |
| METAC | Cash Management | January 28-February 6, 2020 |
| MCM | Inflation-Targeting Framework and Exchange Rate Regime (virtual) | July 6–17, 2020 |
| STA | Government Finance Statistics | September 14–25, 2020 |
| METAC | Producer Price Index (virtual) | September 21-October 2, 2020 |
| MCM | Insurance Supervision (virtual) | October 19 – November 5, 2020 |
| METAC | Fiscal Risks from PPPs (virtual) | November 1–8, 2020 |
| METAC | Implementation of Basel II and III standards (virtual) | October 26-November 3, 2020 |
| METAC | Fiscal Risks from SOEs (virtual) | November 9–20, 2020 |
| ICD | Review of Forecasting and Policy Analysis System | November 16, 2020- January 29, (FPAS) (virtual) 2021 |
| METAC | Risk Management Unit and Tax Governance (virtual) | March 1–15, 2021 |
| METAC | Fiscal Risks from SOEs (virtual) | March 8–19, 2021 |
| METAC | Implementation of Basel II and III Standards (virtual) | April 2021 |
| METAC | Supervisory Review and Evaluation Process (virtual) | June 25–July 27, 2021 |
| ICD | Review of Forecasting and Policy Analysis System (FPAS) and Communications (virtual) | August 23-September 10, 2021 |
| METAC | Internal Control framework (virtual) | October 11–22, 2021 |
| MCM | Central Bank Digital Currency | December 15, 2021 – March 30, 2022 |
| ICD | Financial Development and Financial Inclusion | February 7–18, 2022 |
| FAD | Improving Compliance Risk Management | March 14–25, 2022 |
| FAD | Revenue Administration | April 18—May 5, 2022 |
| MCM | Financial Supervision and Regulation | June 20–24, 2022 |
| FAD | Internal Control and Audit | June 20—July 8, 2022 |
| MCM | Developing Trading Platform | September 7–20, 2022 |
| FAD | Revenue Administration Gap Analysis Program | September 17–22, 2018 |
| STA | Government Finance Statistics | September 24-October 5, 2018 |
| STA | Financial Sector Indicators | October 15–26, 2018 |
| FAD | Public Corporations Fiscal Risks Management | October 22–November 5, 2018 |
| STA | Government Finance Statistics | February 14–20, 2019 |
| MCM | Systemic Risk Monitoring – Stress Testing | February 21–March 1, 2019 |
| STA | Government Finance Statistics | April 1–12, 2019 |
| MCM | Macroprudential Policy | April 23–May 2, 2019 |
| METAC | National Accounts and Price Statistics | June 10–11, 2020 |
| FAD | Tax Administration and Medium-Term Revenue Strategy | November 12– 25, 2019 |
| METAC | Internal Capital Adequacy Assessment Process (ICAAP) | January 20–24, 2020 |
| STA | External Sector Statistics | January 20–30, 2020 |
| METAC | Cash Management | January 28-February 6, 2020 |
| MCM | Inflation-Targeting Framework and Exchange Rate Regime (virtual) | July 6–17, 2020 |
| STA | Government Finance Statistics | September 14–25, 2020 |
| METAC | Producer Price Index (virtual) | September 21-October 2, 2020 |
| MCM | Insurance Supervision (virtual) | October 19 – November 5, 2020 |
| METAC | Fiscal Risks from PPPs (virtual) | November 1–8, 2020 |
| METAC | Implementation of Basel II and III standards (virtual) | October 26-November 3, 2020 |
| METAC | Fiscal Risks from SOEs (virtual) | November 9–20, 2020 |
| ICD | Review of Forecasting and Policy Analysis System | November 16, 2020- January 29, (FPAS) (virtual) 2021 |
| METAC | Risk Management Unit and Tax Governance (virtual) | March 1–15, 2021 |
| METAC | Fiscal Risks from SOEs (virtual) | March 8–19, 2021 |
| METAC | Implementation of Basel II and III Standards (virtual) | April 2021 |
| METAC | Supervisory Review and Evaluation Process (virtual) | June 25–July 27, 2021 |
| ICD | Review of Forecasting and Policy Analysis System (FPAS) and Communications (virtual) | August 23-September 10, 2021 |
| METAC | Internal Control framework (virtual) | October 11–22, 2021 |
| MCM | Central Bank Digital Currency | December 15, 2021 – March 30, 2022 |
| ICD | Financial Development and Financial Inclusion | February 7–18, 2022 |
| FAD | Improving Compliance Risk Management | March 14–25, 2022 |
| FAD | Revenue Administration | April 18—May 5, 2022 |
| MCM | Financial Supervision and Regulation | June 20–24, 2022 |
| FAD | Internal Control and Audit | June 20—July 8, 2022 |
| MCM | Developing Trading Platform | September 7–20, 2022 |
FSAP Update
The latest update of the Financial Sector Assessment Program was performed in April 2015. The findings were discussed with the authorities during the October/November 2015 Article IV mission and discussed by the Board on December 14, 2015. Continued progress is being made to upgrade the financial sector policy framework in line the 2015 FSAP recommendations.
Safeguard Assessment
The 2019 assessment found strong safeguards at the BAM. Steps taken by the BAM to enhance financial reporting transparency have laid the groundwork for the transition to International Financial Reporting Standards (IFRS), which is planned in accordance with the timelines of the national convergence project in Morocco. This project, which faced some COVID-19 related delays, is nonetheless ongoing with TA from the World Bank and the national accounting body in Morocco is expected to issue a draft code in early 2023 which will lay the foundation for the legal amendments to the national accounting law later in the year.
Resident Representative: None
Statistical Issues
As of November 21, 2022
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision is adequate to conduct effective surveillance. | |
| National accounts: Real sector data are adequate for surveillance. Morocco compiles annual and quarterly GDP. The base year used to derive constant price estimates is 2014. The HCP is currently developing a price index for services. Plans are in place to develop a construction cost index, and a producer price indexes for agricultural products. The CPI weight reference period is 2017. | |
| Government finance statistics: Fiscal data are adequate for surveillance. Recent expansion of the coverage to consolidated general government is an important progress, but the continuous provision of individual subsectors (central government, social security schemes and local governments) is relevant for analysis and surveillance. Future enhancements could include the provision to the Fund of debt data at both face and nominal value and initiating the compilation of other accounts payable and nonfinancial corporations debt data. | |
| Balance of payments statistics: External sector data are adequate for surveillance. The Office des Changes of Morocco submits timely balance of payments and international investment position statistics and participates regularly in the annual Coordinated Direct Investment Survey. | |
| Monetary and financial statistics: They are adequate for surveillance. Morocco reports monetary and financial statistics (MFS) for the central bank, other depository corporations, and other financial corporations to the IMF’s Statistics Department (STA) using the standardized report forms. Bank Al-Maghrib reports some key indicators of the Financial Access Survey (FAS), including the two indicators adopted by the U.N. to monitor Target 8.10 of the Sustainable Development Goals (commercial bank branches per 100,000 adults and ATMs per 100,000 adults). Financial Sector Surveillance. Morocco does not report financial soundness indicators (FSIs). A technical assistance mission conducted in October 2018 assisted Bank Al-Maghrib in compiling a set of FSIs for deposit takers based on internationally accepted standards as set out in the IMF’s FSI Compilation Guide but regular reporting of FSIs has not started yet. |
|
| II. Data Standards and Quality | |
| Morocco has been an SDDS subscriber since December 2005. | The results of a data ROSC mission were published in April 2003 (Country Report No. 03/92). |
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision is adequate to conduct effective surveillance. | |
| National accounts: Real sector data are adequate for surveillance. Morocco compiles annual and quarterly GDP. The base year used to derive constant price estimates is 2014. The HCP is currently developing a price index for services. Plans are in place to develop a construction cost index, and a producer price indexes for agricultural products. The CPI weight reference period is 2017. | |
| Government finance statistics: Fiscal data are adequate for surveillance. Recent expansion of the coverage to consolidated general government is an important progress, but the continuous provision of individual subsectors (central government, social security schemes and local governments) is relevant for analysis and surveillance. Future enhancements could include the provision to the Fund of debt data at both face and nominal value and initiating the compilation of other accounts payable and nonfinancial corporations debt data. | |
| Balance of payments statistics: External sector data are adequate for surveillance. The Office des Changes of Morocco submits timely balance of payments and international investment position statistics and participates regularly in the annual Coordinated Direct Investment Survey. | |
| Monetary and financial statistics: They are adequate for surveillance. Morocco reports monetary and financial statistics (MFS) for the central bank, other depository corporations, and other financial corporations to the IMF’s Statistics Department (STA) using the standardized report forms. Bank Al-Maghrib reports some key indicators of the Financial Access Survey (FAS), including the two indicators adopted by the U.N. to monitor Target 8.10 of the Sustainable Development Goals (commercial bank branches per 100,000 adults and ATMs per 100,000 adults). Financial Sector Surveillance. Morocco does not report financial soundness indicators (FSIs). A technical assistance mission conducted in October 2018 assisted Bank Al-Maghrib in compiling a set of FSIs for deposit takers based on internationally accepted standards as set out in the IMF’s FSI Compilation Guide but regular reporting of FSIs has not started yet. |
|
| II. Data Standards and Quality | |
| Morocco has been an SDDS subscriber since December 2005. | The results of a data ROSC mission were published in April 2003 (Country Report No. 03/92). |
Morocco—Table of Common Indicators Required for Surveillance
(As of November 21, 2022)
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means, as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign and domestic financing by instrument (currency and deposits, securities, loans, shares, and other accounts payable)
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).
Reflects the assessment provided in the data ROSC published on April 4, 2003 and based on the findings of the mission that took place during January 16–30, 2002, for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), or not observed (NO).
Morocco—Table of Common Indicators Required for Surveillance
(As of November 21, 2022)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of publication7 | Memo items | ||
|---|---|---|---|---|---|---|---|
| Data Quality – Methodological soundness8 | Data Quality – Accuracy and reliability | ||||||
| Exchange Rates | Nov. 2022 | 11/21/2022 | M | M | M | ||
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | Oct. 2022 | 11/07/2022 | M | M | M | ||
| Reserve/Base Money | Oct. 2022 | 11/07/2022 | M | M | M | LO, O, LNO, LO | LO, LO, O, O, LO |
| Broad Money | Oct. 2022 | 11/07/2022 | M | M | M | ||
| Central Bank Balance Sheet | Oct. 2022 | 10/07/2022 | M | M | M | ||
| Consolidated Balance Sheet of the Banking System | Oct. 2022 | 10/31/2022 | M | M | M | ||
| Interest Rates2 | Nov. 2022 | 11/21/2022 | M | M | M | ||
| Consumer Price Index | Sep. 2022 | 10/20/2022 | M | M | M | O, LO, O, O | LO, LO, O, O, O |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | A | A | A | LO, LNO, LO, O | O, O, O, O, LO | ||
| Revenue, Expenditure, Balance and Composition of Financing3– Budgetary Central Government | Sep. 2021 | 10/29/2022 | M | M | M | ||
| Stocks of Central Government and Central Government-Guaranteed Debt5 | Q2/2022 | 9/30/2022 | Q | Q | Q | ||
| External Current Account Balance | Q2/2022 | 9/30/2022 | Q | Q | Q | LO, LO, LO, LO | LO, LO, O, LO, LNO |
| Exports and Imports of Goods and Services | Sep. 2022 | 9/30/2022 | Q | Q | Q | ||
| GDP/GNP | Q2/2022 | 9/30/2022 | Q | Q | Q | LO, LNO, LO, LO | LNO, LO, O, O, LNO |
| Gross External Debt | Q2/2022 | 9/30/2022 | Q | Q | Q | ||
| International Investment Position 6 | Q2/2022 | 9/30/2022 | Q | Q | Q | ||
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means, as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign and domestic financing by instrument (currency and deposits, securities, loans, shares, and other accounts payable)
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).
Reflects the assessment provided in the data ROSC published on April 4, 2003 and based on the findings of the mission that took place during January 16–30, 2002, for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), or not observed (NO).
Morocco—Table of Common Indicators Required for Surveillance
(As of November 21, 2022)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of publication7 | Memo items | ||
|---|---|---|---|---|---|---|---|
| Data Quality – Methodological soundness8 | Data Quality – Accuracy and reliability | ||||||
| Exchange Rates | Nov. 2022 | 11/21/2022 | M | M | M | ||
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | Oct. 2022 | 11/07/2022 | M | M | M | ||
| Reserve/Base Money | Oct. 2022 | 11/07/2022 | M | M | M | LO, O, LNO, LO | LO, LO, O, O, LO |
| Broad Money | Oct. 2022 | 11/07/2022 | M | M | M | ||
| Central Bank Balance Sheet | Oct. 2022 | 10/07/2022 | M | M | M | ||
| Consolidated Balance Sheet of the Banking System | Oct. 2022 | 10/31/2022 | M | M | M | ||
| Interest Rates2 | Nov. 2022 | 11/21/2022 | M | M | M | ||
| Consumer Price Index | Sep. 2022 | 10/20/2022 | M | M | M | O, LO, O, O | LO, LO, O, O, O |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | A | A | A | LO, LNO, LO, O | O, O, O, O, LO | ||
| Revenue, Expenditure, Balance and Composition of Financing3– Budgetary Central Government | Sep. 2021 | 10/29/2022 | M | M | M | ||
| Stocks of Central Government and Central Government-Guaranteed Debt5 | Q2/2022 | 9/30/2022 | Q | Q | Q | ||
| External Current Account Balance | Q2/2022 | 9/30/2022 | Q | Q | Q | LO, LO, LO, LO | LO, LO, O, LO, LNO |
| Exports and Imports of Goods and Services | Sep. 2022 | 9/30/2022 | Q | Q | Q | ||
| GDP/GNP | Q2/2022 | 9/30/2022 | Q | Q | Q | LO, LNO, LO, LO | LNO, LO, O, O, LNO |
| Gross External Debt | Q2/2022 | 9/30/2022 | Q | Q | Q | ||
| International Investment Position 6 | Q2/2022 | 9/30/2022 | Q | Q | Q | ||
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means, as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign and domestic financing by instrument (currency and deposits, securities, loans, shares, and other accounts payable)
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).
Reflects the assessment provided in the data ROSC published on April 4, 2003 and based on the findings of the mission that took place during January 16–30, 2002, for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), or not observed (NO).