Morocco is not renewing its $3.47 billion Precautionary and liquidity Line provided by the International Monetary Fund, said Mohamed Boussaid Minister of Finance, during a conference held in Marrakech. The above-mentioned program known as PLL, is designed to flexibly meet the liquidity needs of member countries with sound economic fundamentals but with some limited remaining vulnerabilities which preclude them from using the Flexible Credit Line(FCL). Morocco has benefited from this option in 2011 in the middle of the Arab spring and renewed it twice without drowning on it, said the National, an Emirati online newspaper.
«Morocco has said that this facility has fulfilled its mission and that there is no utility in renewing it again as the macroeconomic framework and indicators are satisfactory», commented Boussaid adding that «this doesn't mean the good relationship we have with the IMF shouldn't continue.» The minister also insisted that the IMF has helped Morocco through its transition moving to a more flexible exchange rate regime. Commenting on the same topic, Christine Lagarde, IMF managing director stated Tuesday in Marrakech that adopting a more flexible exchange rate regime has been «a very good decision». She added that this reform would make «international markets and foreign investors» appreciate this decision.
