Morocco: Dirham Depreciates Against Euro

Rabat – The Moroccan Dirham (MAD) lost 0.36% of its value against the Euro while remaining stable against the US dollar between January 6 and January 12, according to data from Bank Al-Maghrib (BAM). 

Regarding Morocco’s stock exchange market, trading remained in the green overall, with the MASI index rising by 1.8% over the same period. 

The rise in the MASI index is offset by the positive result in a 2.7% rise in Morocco’s construction and construction material sector, a 1.9% increase in the banking sector, and a 0.9% growth in the telecommunication sector. 

However, the entertainment and hospitality sector lost 1% of its value, reacting to the strict COVID-19 containment measures.

The tourism industry was hardest hit by Morocco’s strict measures to curb the spread of COVID-19’s Omicron variant ahead of the New Year’s peak tourism season.

Enacted in December 2021, the total border closure shut down businesses in the tourism sector grappling to reach their bottom line.

Business owners across Morocco sounded the alarm that Morocco’s tough measures to curb the spread of COVID-19 would undermine the country’s competitiveness as rival destinations race to fill the vacuum.

Aside from the short-term prospects, tourism professionals worry that these measures will make it harder to promote Morocco long after travel restrictions ease as tourists will remain anxious about the possibility of last-minute measures.

Tourism professionals are not alone in their assessment. A recent report by Fitch projects a slow economic growth for Morocco throughout 2022 due to the pandemic-induced disruptions to the country’s tourism industry.

The report, published this week, notes that Morocco’s tough measures will continue to weigh down on tourism and the economy as a whole as the industry makes up 15% of the country’s real Gross Domestic Production (GDP). 

source: moroccoworldnews.com