Euro will give Moroccan businessman several advantages
Morocco-European Union, Economics, 12/17/1998

The enforcement of the European single currency "Euro" next January will not entail any shocks for Moroccan businessmen. The Euro will on the contrary secure several advantages, said head of the European Union Delegation in Morocco, Lucio Guerrato.

The European diplomat told local "Al-Ittihad Al-Ichtiraki" daily that the only chock possible will be a technical one that will concern the banking sector only, as this sector will have to adapt to the use of the new currency.

Moroccan banks will have to open accounts in the Euro and to keep the books in this currency, he said. The task is not easy but is no more difficult than that of the European banks.

One of the advantages mentioned by Guerrato is that the Euro will provide a guarantee of the exchange value and will lessen the risks caused by fluctuations of exchanges between European currencies. The Euro will equally be beneficial to Moroccan exports to the European Union as the price of the products will not change according to the value of each European currency. The Euro will ease the transit of Moroccan products from a market to another, Guerrato said.

He warned however that exporters should not expect miracles from the Euro, the European currency will only ease deals and will not have any impact in the absence of a genuine foreign trade.

The Economist Intelligence Unit (EIU) said earlier this week that the listing next January in Morocco of the European single currency "Euro" will contribute to stabilizing Morocco's national currency, the Dirham,

The value of the Dirham will be calculated on a daily basis against a basket of currencies, the report says, adding that the Moroccan currency will largely follow the Euro at least until year 2000.

The EIU notes that the U.S. Dollar will weaken against the Euro during the two coming years, as economic growth in Europe will be higher than in the USA in 1999 and 2000.

The report, hence, predicts a consolidation of the Dirham against the U.S Dollar. That is why, it is almost ruled out that Morocco will depreciate its currency, because it will prefer to maintain a strong Dirham to curb inflation and service external debt.

Previous Stories:
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