The Moroccan Economy in Brief: Wednesday, June 22, 2022

The Moroccan Treasury is studying an exit on the international market:

The Wali of Bank Al-Maghrib (BAM), Abdellatif Jouahri, stated on Tuesday in Rabat that discussions are underway about a possible exit of the Treasury on the international market. "Discussions between the Treasury and advisory banks are already underway to test the ground with international investors, assess the conditions of loans on world markets and see how the risk premium of Morocco in the current conditions, " emphasized the governor of the central bank during a press briefing at the end of the second quarterly meeting of the Board of BAM. He said that of the 40 billion dirhams (MMDH) of foreign currency debt planned by the 2022 Finance Law, about 15 to 20 MMDH will be mobilized from multilateral development institutions, while the rest should be mobilized via international financial markets.

A draft law on cryptocurrencies will see the light of day in Morocco:

On Tuesday in Rabat, the Wali of Bank Al-Maghrib (BAM), Abdellatif Jouahri, announced that a bill to regulate the use of cryptocurrencies will see the light of day. Speaking at the press briefing at the end of the second quarterly meeting of 2022 of BAM, Jouahri reported that a committee is working to put in place an appropriate regulatory framework to combine innovation, technology, and consumer protection. In this regard, the Wali of the central bank stressed that several components will be taken into account for the development of this bill, including global experiences in this area, noting that a benchmarking is underway with the International Monetary Fund (IMF) and the World Bank to make the necessary consultations in this direction.

Safran expands its Casablanca plant by 6,000 square meters:

Safran, an industrial and technology group that specializes in aerospace and defense, inaugurated the expansion of its Safran Nacelles Morocco plant in Casablanca on Tuesday, dedicated to the production of aircraft nacelles. Inaugurated in the presence of the Minister of Industry and Commerce, Ryad Mezzour, the Minister of Transport and Logistics, Mohamed Abdeljalil, Safran CEO Olivier Andriès, the Chairman of Safran Nacelles, Vincent Caro, and the Chairman of the Board of Directors of Safran Nacelles Morocco, Hamid Benbrahim El Andaloussi, this 6,000-square-meter extension will be dedicated to the production of aircraft nacelles. This 6,000 square meter extension will be used to produce nacelles for the Airbus A320neo and the Gulfstream G700/G800 high-end business jets.

The central bank announces a growth rate by 1% in 2022 and 4% in 2023:

Economic growth would be at 1% in 2022, due to the decrease in cereal production during this year, then accelerate to 4% in 2023, under the assumption of a cereal harvest of 75 million quintals (Mqx), Bank Al-Maghrib (BAM) forecasts. "After the remarkable rebound of 7.9% recorded in 2021, the increase of the national economy should, according to the projections of Bank Al-Maghrib, be reduced to 1% this year and then accelerate to 4% in 2023," said the Central Bank in a statement issued at the end of the second quarterly meeting of its Board for the year 2022. As a result of unfavorable climatic conditions, the cereal production would decrease in 2022, according to the estimates of the Department of Agriculture, by 69% to 32 million quintals (Mqx), recalls the same source.

Moroccan health authorities banned the import of plants:

The National Office of Food Safety (ONSSA) announced on Tuesday, the ban on the introduction, by travelers to Morocco, plants (seedlings, ornamental plants, and seeds) and this, to protect the national plant heritage against the bacterium Xylella fastidiosa and avoid its introduction into Morocco. To this end, "any plant (plant, ornamental plant, and seed) that is introduced by travelers will be seized and destroyed in accordance with the regulations in force," according to the Office in a statement. In addition, ONSSA reports a reinforcement of preventive measures against this bacterium, by suspending all imports of ornamental plants from countries that have recorded the presence of this bacterium.

Morocco expects to receive more than 87 billion dirhams in remittances in 2022:

According to Bank Al-Maghrib (BAM), remittances from Moroccans living abroad (MREs) should reach 87.3 billion dirhams (MMDH) in 2022. "After a record level of 93.7 billion recorded in 2021, remittances from Moroccans living abroad will gradually return to their pre-crisis level, totaling 87.3 billion in 2022 and 84 billion in 2023," stated the Central Bank in a press release issued at the end of the second quarterly meeting of its Board for the year 2022. Benefiting from the reopening of borders and the launch of the Marhaba operation, travel receipts, for their part, would experience a gradual recovery, increasing by 34.3 billion dirhams in 2021 to 54.3 billion dirhams in 2022 and 70.9 billion dirhams in 2023, according to BAM.