Morocco should receive this Monday $ 1.2 billion from the International Monetary Fund (IMF), under the Special Drawing Right (SDR). These funds will help strengthen the country’s foreign exchange reserves.
In early August, the IMF’s Governing Council agreed to grant a general allocation of special drawing rights of $ 650 billion to its member countries to increase liquidity in this time of crisis. Morocco, a member country of the IMF with a quota of 0.19%, will receive 1.2 billion dollars, or 10.5 billion dirhams. This allocation will allow Morocco to strengthen its foreign exchange reserves to a comfortable level of 328.5 billion dirhams by the end of 2021, according to the forecasts of the Central Bank.
With this sum, the Moroccan monetary authorities will be able to finance the revival of the national economy in this difficult context. “This is a historic decision: the largest allocation of SDRs in IMF history and a breath of fresh air for the world economy in this time of unprecedented crisis. This SDR allocation will benefit all member countries, meet the global need for long-term reserves, boost confidence and strengthen the resilience and stability of the global economy,” said Kristalina Georgieva, Managing Director of the IMF.
The SDR is not a debt but an allocation to strengthen the country’s official reserve holdings, via the corresponding increase in its SDR holdings. In return, the sum of the SDRs is recorded on the liabilities side of the Central Bank’s balance sheet as a commitment to the IMF. As a reminder, these speeches are rarely granted. Since 1972, they have been granted only three times.