King receives Governor of Morocco's Central Bank

King Mohammed VI received, here Wednesday, Governor of Bank Al Maghrib (Central Bank), Abdellatif Jouahri, who presented the bank's annual report on the economic, monetary and financial situation for the year 2007.

Tangier - King Mohammed VI received, here Wednesday, Governor of Bank Al Maghrib (Central Bank), Abdellatif Jouahri, who presented the bank's annual report on the economic, monetary and financial situation for the year 2007.
 
    In an address before the King, Mr. Jouahri said that economic growth in 2007 registered a decline in view of the sharp fall in the primary sector's output. However, he noted, growth in the other sectors continued at a sustained pace.

    He pointed out that inflation in 2007 has significantly decelerated, despite the rise in basic food and oil prices internationally.

    Mr. Jouahri highlighted that the budget was, for the first time, almost balanced, thanks to growing tax revenues. Similarly, the debt/GDP ratio marked a decrease.

    He further stated that the balance of payments has recorded a surplus in spite of an increasing trade deficit, thus reinforcing foreign exchange reserves.

    The Governor of Bank Al-Maghrib underlined that these positive outcomes will undoubtedly be strengthened by the ongoing sectoral reforms. Their efficiency requires the adoption of a long-term consistent approach, together with the development of monitoring and evaluation mechanisms, in order to maximize their impact on growth.

    He went on to say that Bank Al Maghrib in 2007 continued to strengthen the various components of the monetary policy decision-making process. To this end, major accomplishments have been achieved in terms of the central bank’s capacity to monitor and forecast economic activity and inflation. Bank Al Maghrib has also carried on its efforts to promote an enabling environment for sound financing of all economic agents, mainly small and medium-sized enterprises, and to increase the bancarization rate.

    Mr. Jouahri added that the Financial Sector Assessment Program Report of the joint mission of the International Monetary Fund and the World Bank highlighted the Moroccan banking system’s soundness and profitability as well as public banks’ rehabilitation.

    Finally, the Governor underlined that the ongoing reform process, under the leadership of King Mohammed VI, enables Morocco to aspire to become a regional financial center.

MAP