Morocco Foreign Reserves fall
Morocco lost DH 21 billion in foreign exchange reserves in 2011, according to a statement by Bank Al-Maghrib, the country’s central bank. Morocco’s reserves can only cover five months of imports.
Source : https://www.marocafrik.com/english/Morocco-Foreign...
The central bank (BAM) indicated that Morocco’s foreign reserves fell 11.82 percent over 2011 to reach DH 166.4 billion ($20 billion).This decline is expected to pose real difficulties in financing future Moroccan imports, reports the website nuqudy.com.
Moroccan exports whilst they have seen an increase recently, have never covered the full cost of imports.These have risen in 2011 because of rising oil and food prices.
The fall in foreign currency reserves is despite an increase in remittances from Moroccan workers abroad and an increase in global phosphate sales by OCP. There has also been a decline in Foreign Direct Investment (FDI) from Europe and Tourism revenues have not increased sufficiently. Grain imports are expected to double during 2012-2013 as a result of the bad agricultural season caused by drought.
Bank Al -Maghrib in its February 2012 report notes that " net foreign assets fell 15 percent, owing to the decrease in the net exchange reserves of Bank Al-Maghrib. In contrast, net claims on thecentral government increased by 29.1 percent, due to higher borrowings from the other depository corporations."
The BAM conducted a business survey which highlights lack of liquidity among banks, coupled with their reluctance to fund certain types of economic activities which has put stress on economic
growth.
The businessman's survey showed that no economic sector has been spared from this phenomenon which is even more burdensome for industrial chemical and para chemical companies.
The banks concentrate primarily on short-term investments with 33% of funds committed, shunning longerterm committments and investors are forced to resort to harsh self-financing which test their treasuries, and affect the fragile financial balance of their businesses.
Providing 59% of short-term investments for the first quarter of 2012 for self-financing businesses has allowed the growth of investments that will offer further consolidation in the future. The risk of deterioration of companies' equity could leave an area of uncertainty.
Moroccan exports whilst they have seen an increase recently, have never covered the full cost of imports.These have risen in 2011 because of rising oil and food prices.
The fall in foreign currency reserves is despite an increase in remittances from Moroccan workers abroad and an increase in global phosphate sales by OCP. There has also been a decline in Foreign Direct Investment (FDI) from Europe and Tourism revenues have not increased sufficiently. Grain imports are expected to double during 2012-2013 as a result of the bad agricultural season caused by drought.
Bank Al -Maghrib in its February 2012 report notes that " net foreign assets fell 15 percent, owing to the decrease in the net exchange reserves of Bank Al-Maghrib. In contrast, net claims on thecentral government increased by 29.1 percent, due to higher borrowings from the other depository corporations."
The BAM conducted a business survey which highlights lack of liquidity among banks, coupled with their reluctance to fund certain types of economic activities which has put stress on economic
growth.
The businessman's survey showed that no economic sector has been spared from this phenomenon which is even more burdensome for industrial chemical and para chemical companies.
The banks concentrate primarily on short-term investments with 33% of funds committed, shunning longerterm committments and investors are forced to resort to harsh self-financing which test their treasuries, and affect the fragile financial balance of their businesses.
Providing 59% of short-term investments for the first quarter of 2012 for self-financing businesses has allowed the growth of investments that will offer further consolidation in the future. The risk of deterioration of companies' equity could leave an area of uncertainty.
Source : https://www.marocafrik.com/english/Morocco-Foreign...