Morocco’s Foreign Currency Reserves rise 16% on year-on-year

Casablanca, Morocco (Capital Markets in Africa):- Morocco’s net foreign currency reserves amounted to MAD 193.9 billion till 12 June, an increase of 16% year-on-year, according to local gazette Hespress.

On 17 June, Morocco’s central bank, or Bank Al-Maghrib, kept its benchmark interest rate unchanged at 2.5% , saying that inflation would remain consistent with price stability targets.

Inflation is expected to reach 1.5% in 2015 and 1.4% on average over the next six quarters. However, there are external uncertainties over oil prices, according to the central bank.

A decline in global oil prices revived Morocco’s public finances and slashed deficits.

Morocco expects an improvement in the state budget deficit to 4.3% of GDP, down from 4.9% in 2014.

The country’s trade deficit fell 25.3% to MAD 63.12 billion in the five-month period till the end of May, compared with a year earlier.