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Moroccan Central Bank Governor Abdellatif Jouahri stated that protecting purchasing power and stabilizing the business landscape requires brave decisions, emphasizing the need for caution in implementing major reforms to avoid any hasty actions that might threaten macroeconomic balances.
During a press conference following the fourth and final quarterly meeting of Bank Al-Maghrib for 2025, Jouahri clarified the ongoing debate regarding accelerating the flexibility of the dirham’s exchange rate, asserting that the central bank prefers a gradual approach rather than rushing into potentially detrimental steps for the national economy.
Jouahri revealed that he managed to convince the International Monetary Fund to postpone this initiative, announcing that 2026 would serve as a technical year dedicated to internal testing and preparation for banking systems, without any actual changes in the exchange rate regime, with a reassessment of the situation to take place in 2027.
He explained that this approach primarily aims to safeguard small and medium-sized enterprises and ensure that economic actors comprehend potential risks, stressing that making the right decision necessitates thorough consideration and evaluating consequences before undertaking any structural reform.
Regarding price trends, Jouahri acknowledged a gap between the official inflation indicators and the daily perceptions of citizens, clarifying that a decrease in the inflation rate does not equate to falling prices, but rather a slowdown in their rise. He emphasized that citizens evaluate the economic situation based on their daily living costs rather than statistical ratios.
On the subject of the compensation fund, Jouahri criticized the continuation of broad subsidies, arguing that they do not promote social justice, as both affluent and vulnerable groups benefit equally. He called for expediting the activation of a unified social registry to direct support directly to those in need.
Jouahri stressed that major reforms require political courage, noting that waiting for the perfect timing to implement difficult decisions may lead to their indefinite postponement, urging for clear communication with citizens about the motivations and objectives of reforms.
In terms of financing the economy, Jouahri highlighted structural imbalances in the business landscape, with micro-enterprises representing around 94% of total businesses, while 80% of them generate no more than thirty thousand dirhams annually, reflecting their fragility and difficulties in accessing financing.
He revealed that the “Launch” program faced significant challenges, with approximately 42% of projects rejected due to inadequate feasibility studies, confirming that Bank Al-Maghrib decided to adopt a new approach that encompasses comprehensive support for businesses from the idea stage to implementation, rather than merely providing financing.
Concerning the banking sector, Jouahri affirmed that the central bank is monitoring ongoing negotiations regarding certain sales or acquisitions without intervening in the decisions of actors, stressing that the intervention of Bank Al-Maghrib is only at the stage of changing control, by examining the industrial project and its compliance with precautionary regulations before presenting it to the specialized committee in partnership with the Ministry of Economy and Finance.
Jouahri warned against the growing reliance on cash transactions, stating that excessive dependence on cash creates fertile ground for the expansion of the informal economy and tax evasion, and called for enhancing financial literacy and encouraging modern payment methods to contribute to broader integration of the national economy into the structured system.
