×

UPDATE 1-Morocco to launch flexible exchange rate for dirham on Monday -sources

-sources@ (Adds details)

DUBAI, Jan 12 (Reuters) - Morocco will introduce a flexible exchange rate system for the dirham currency on Monday, sources familiar with the matter told Reuters on Friday.

An official statement was expected on Friday or at the weekend, the sources said. No more details were immediately available.

Morocco has been considering widening the official bands in which the dirham fluctuates by around 5 percent in total in the first phase of its plan to introduce a flexible exchange rate system, two sources familiar with the process had previously told Reuters.

Morocco has been working with a technical mission from the International Monetary Fund (IMF) to liberalise its currency. That move had been expected last year but got delayed pending further studies.

The Moroccan dirham is pegged most closely to the euro, but as a step towards greater flexibility the central bank has reduced the euro weighting of the exchange rate to 60 percent from 80 percent and raised the U.S. dollar weighting to 40 percent from 20 percent. (Reporting by Aziz El Yaakoubi; Writing by Ulf Laessing; Editing by Hugh Lawson)