Moroccan Central Bank law reform to enhance bank's autonomy

The draft status of the Moroccan central Bank "Bank Al Maghrib" is to enhance the bank's autonomy and set an adequate structure for the management of a credible monetary policy, said Moroccan finance minister, Fathallah Oualalou.

The minister told, on Monday, the Finance and Economic Development Commission of the House of Representatives the reform of the law on the creation of Bank Al Maghrib is needed because of the deep changes during the nineties in the finance sector that was marked by the liberalisation of the banking system and implementation of transparency rules recommended by international organisations.

The bank's status will clarify the mission of Bank Al Maghrib regarding exchange policy and will cut down its subsidies to the treasury department, said Oualalou.

Bank Al Maghrib will determine its objectives and the tools of a monetary policy, including price stability, he went on to say.

The exchange policy will be set pursuant to the directions and objectives of the exchange system established by the minister, Oualalou said adding Bank Al-Maghrib's normal subsidies to the treasury department will be eliminated.