His Majesty the King Receives Wali of Bank Al-Maghrib

On Jul 29, 2023

Abdellatif Jouahri, Wali (governor) of Bank Al-Maghrib, was received by His Majesty King Mohammed VI on Saturday at the Royal Palace in Tetouan along with HRH Crown Prince Moulay El Hassan and HRH Prince Moulay Rachid. He gave the Sovereign the Central Bank’s annual report on the economic, monetary, and financial situation for the fiscal year 2022.

Jouahri noted in his speech before His Majesty the King that the Moroccan economy only grew by 1.3 percent in 2022 compared to 8 percent in 2021, despite being affected by a difficult global environment and a particularly severe drought.

He also emphasized that the public finance position was still improving, with the budget deficit down to 5.2 percent of GDP, despite the challenging economic environment and the efforts made to mitigate the effects of price increases on individuals and businesses.

He stated that in response, Bank Al-Maghrib tightened its monetary policy to get inflation back to levels consistent with the goal of price stability. As a result, at the end of the year, the Bank increased its key rate to 2.5%.

Additionally, it continued to satisfy all of the banks’ demands for liquidity, ensuring adequate funding of the economy. It also continued with the implementation of its initiatives for very tiny, small, and medium-sized businesses (VSMEs).

Jouahri affirmed that the enormous changes in the global landscape, including geopolitical fragmentation, the rise of economic sovereignty, the recurrence of extreme climate phenomena, and the worsening of water stress, foreshadow significant challenges our country will have to face in the years to come.

In reaction to these changes, he stressed the importance of improving the adaptability and agility of public policy as well as boosting the resilience of the country’s economy.

To this purpose, the Governor made it clear that the growth of the human capital should continue to take precedence. In this regard, he described how two key initiatives offer hope for a qualitative improvement: the first is the generalization of social protection, which His Majesty the King announced in 2021, and the second is the reform of the educational system, for which significant efforts have been made in recent years.

In terms of the economy, the Governor emphasized that the public sector reform, which His Majesty the King had asked for in 2020, would enable addressing the fundamental dysfunctions of public institutions. The significant mobilization to increase private investment in response to His Majesty’s most recent speech provides hope for a fresh impetus for growth and employment.

The Governor also stressed the necessity of rationalizing public resources, which is now a necessity and necessitates the acceleration of various initiatives that would free up buffers required to strengthening social safety nets. The 2013 subsidy reform and the pension reform must be completed as soon as possible.

The Governor of Bank Al-Maghrib noted that the recurring external shocks since 2020 have shown the economic system’s flaws and the susceptibility of some population groups. It did, however, also highlight the resilience that Morocco has built up as a result of the reforms made over the past 20 years and the economic diversification policy.

In this regard, Jouahri recalled how, under His Majesty’s leadership, Morocco had established itself as a reliable partner and a place of peace and stability on the global stage. The removal of the nation from the grey lists of the FATF and the EU, the IMF’s Flexible Credit Line, and the hosting of the IMF and World Bank Annual Meetings in Marrakech were all important advantages.

The Central Bank’s annual report on the economic, monetary, and financial position for the year 2022 was presented at this time by Abdellatif Jouahri to HM King Mohammed VI, may God help Him.