RABAT, Nov. 8 (Xinhua) -- International Monetary Fund (IMF) said it backs Morocco's move to gradually float its currency, local media reported on Wednesday.
Citing IMF head of mission in Morocco Nicolas Blancher, the financial news site Medias24.com said IMF staff "supports the authorities' intention to gradually transition to a more flexible exchange rate regime, which should support the economy's ability to absorb external shocks, and raise competitiveness."
"With current conditions that continue to offer a window of opportunity to implement the transition in a gradual and orderly manner, starting the process as soon as possible would be appropriate," the same source underlined.
Morocco's central bank announced earlier that the first step to float the currency would start in July. However, the Moroccan government decided to delay the move, saying studies are being carried out to ensure enough time for the decision to take effect and to better understand "its impact on the economy and, in particular, on the purchasing power of citizens."
Currently, the dirham is fixed via a peg that is 60 percent weighted to the euro and 40 percent to the U.S. dollar.
The first stage will ease that peg to allow the currency to trade in a narrow range, which will expand gradually over a few years.
