Euro will ease business access to european markets, minister says

The use of the euro, the European single currency, will ease the Moroccan firms' access to European markets, the Moroccan economic forecast and planning minister said on Thursday.

The entry into force of euro will help Moroccan firms have "a better access to the European financial markets," Abdelhamid Aouad told a meeting in Tangiers on the "impact of euro on the Moroccan market."

The European Union is Morocco's first economic partner absorbing 60 percent of Moroccan exports and accounting for 54 percent of the North African country's imports. Some 28 percent of Morocco's foreign debts are contracted in European currencies and 70 percent of the Kingdom's financial reserves are in European currencies.

Aouad underlined that the entry into force of the European single currency will pave the way to Moroccan exports take-off, as the euro "will consolidate the competitiveness of the European firms, which will automatically spur growth in Europe."

He added that the integration of euro in the currencies basket that determines the quotation of the Moroccan national currency, the Dirham will consolidate this currency.

The minister noted, however, that euro will entail some constraints for Morocco. As an instance, he said that Morocco will have to pay back in euro and at higher interest rates, debts that it initially contracted in weaker currencies.