Morocco: Request for an Arrangement Under the Flexible Credit Line-Press Release; Staff Report; and Statement by the Executive Director for Morocco
IMF Staff Country Reports, April 24, 2023
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- Morocco: Request for an Arrangement Under the Flexible Credit Line-Press Release; Staff Report; and Statement by the Executive Director for Morocco
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Bibliographic details
- Published: April 24, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400240508.002
Overview
- Presents Morocco’s Request for an Arrangement under the Flexible Credit Line (FCL).
- Morocco qualifies for the FCL by virtue of its very strong policies, institutional policy frameworks, and economic fundamentals and continued commitment to maintaining such policies in the future.
- The authorities stated their intention to treat the arrangement as precautionary.
- The arrangement will enhance Morocco’s external buffers and provide insurance against plausible tail risks on a temporary basis.
Macroeconomic assessment and resilience
- Morocco’s very strong macroeconomic policies and institutional framework have allowed its economy to remain resilient to multiple negative shocks over the past three years, including:
- the pandemic,
- two droughts,
- the spillovers from Russia’s war in Ukraine.
Downside risks and external environment
- Downside risks to the economic outlook remain elevated and stem primarily from:
- the external environment,
- the impact of climate change.
- Specific shock scenarios noted:
- A greater-than-expected fallout from Russia’s war in Ukraine would:
- lower external demand,
- increase commodity price volatility,
- tighten external financial conditions.
Purpose and policy considerations
- The FCL arrangement is intended as a precautionary instrument to:
- enhance external buffers,
- provide temporary insurance against plausible tail risks.
- The qualification for the FCL rests on:
- very strong policies,
- institutional policy frameworks,
- strong economic fundamentals,
- continued commitment to maintaining such policies.
International Monetary Fund. "Morocco: Request for an Arrangement Under the Flexible Credit Line-Press Release; Staff Report; and Statement by the Executive Director for Morocco", April 24, 2023.
Content in this bundle
- Morocco: Executive Summary and Staff Report Excerpts