Casablanca – In a decisive move to reinvigorate Morocco’s economic momentum, Bank Al-Maghrib (BAM) has announced a series of strategic measures aimed at fostering growth, supporting small businesses, and ensuring monetary stability. At the heart of these efforts is a new cut in the key interest rate, alongside reforms targeting digital currency, financial inclusion, and entrepreneurial development.
Interest rate cut to spur investment
Breaking market expectations, BAM Governor Abdellatif Jouahri revealed a reduction in the benchmark interest rate to 2.25%, marking the second consecutive decrease and the third since June 2024. The decision is based on favorable macroeconomic conditions, including a notable drop in inflation, stable public finances, and robust foreign exchange reserves covering 5.5 months of imports.
“The reduction is a carefully considered move aligned with our mission to ensure price stability while unlocking economic potential,” Jouahri stated during a press briefing on Tuesday. Inflation is projected to remain under control at 2% for the upcoming year, providing a stable environment for investment and consumption.
SMEs and startups at the core of the strategy
Recognizing the essential role of small and very small enterprises (SMEs and VSEs), which constitute 80% of Morocco’s economic fabric, BAM has reinforced its commitment to improving their access to financing. Jouahri emphasized the need for an institutionalized support framework, ensuring not only financial backing but also capacity-building initiatives.
The governor highlighted the recalibration of the “Intilaka” (start) program, which has now been optimized to deliver greater efficiency and impact for entrepreneurs. However, he cautioned that sustainable success requires more than short-term stimulus measures. “We must transition towards a model where businesses receive long-term support and training, particularly in financial management and strategic planning,” he explained.
Education and entrepreneurship: A long-term vision
Beyond financial measures, BAM is advocating for a deeper integration of entrepreneurial skills into Morocco’s education system. Jouahri expressed concern over the lack of an entrepreneurial mindset among young Moroccans, emphasizing the need to instill initiative-taking behaviors from an early age. This, he argued, is crucial in addressing youth unemployment, especially in rural and urban disadvantaged areas.
“A strong economy is built on a strong entrepreneurial culture,” he said. “We must start with education if we want to see long-term improvements.”
Digital currency pilot: Preparing for the future
In a step toward modernizing Morocco’s financial landscape, BAM has initiated a pilot program for digital currency, an experimental project aimed at bolstering financial technology and expanding banking services. While still in its early phases, the initiative reflects BAM’s forward-looking approach to embracing digital transformation in the financial sector.
Challenges from the European market
On the international front, BAM is closely monitoring new European financial regulations that could affect Moroccan banks operating abroad. Jouahri warned that potential restrictions could impact Morocco’s balance of payments and the bank deposits of Moroccans residing overseas (MREs). The central bank, he assured, is actively engaged with national institutions to mitigate these risks and safeguard financial stability.
A new economic era
With these bold initiatives, Bank Al-Maghrib is positioning itself at the forefront of Morocco’s economic transformation. By combining monetary policy adjustments, small business support, educational reform, and financial innovation, the institution aims to create a sustainable and resilient economy, capable of adapting to both domestic and global challenges.
As Morocco navigates its path toward post-pandemic recovery and economic diversification, all eyes will be on how these measures translate into tangible improvements for businesses and consumers alike.
