Morocco's central bank reserves on the rise

The currency reserves of Morocco's central bank, Bank Al-Maghrib, have exceeded for the first time $5 billion (50 billion dirhams), the Moroccan Economy and Finance Ministry said in a release.

The reserves stock stood on August 6 at $5.8 billion, ie. an increase of $1.4 billion (34.6%) over the previous level recorded at the end of 1998.

The assets cover seven months of imports against five months in 1998, the same source said, attributing this unprecedented result to various positive evolutions, especially the ceding of the second license of the Moroccan cellular phone (GSM) to an international consortium, which earned the state over $800 million in hard currency.

The increase in the number of foreign tourists also contributed to the rise in currency reserves. Foreign visitors' numbers jumped by 16% during the first half of 1999.

The increase in the remittances of Moroccan expatriates is another factor contributing to the growth of currency reserves.

The Economy and Finance Ministry also highlighted the increase in foreign investments, which progressed by 130% to more than $400 million (4 billion dh) at the end of June compared to the same period in 1998.