According to a report being carried by Reuters Morocco's Central Bank said on Friday it would liberalise the exchange of foreign banknotes and traveller's cheques from April to energise competition and improve banking services.
Under the existing regime, the central bank sets buy and sell prices for foreign banknotes and traveller's cheques which the banks and foreign exchange offices have to follow.
"A new circular-letter was just published by the Institute of Issue and will be effective on April 3, 2007," the central bank, officially known as Bank Al Maghrib, said in a statement.
More than 3.0 million Moroccan expatriates would benefit from the liberalisation move, analysts said. Expatriate worker remittances are Morocco's main source of foreign currency earnings.
"The new framework...it allows clients to play competition between banks and foreign exchange offices and negotiate the prices related to their operations," the statement added.
The move would ease the central bank's grip on that segment of the foreign exchange market and open competition among the banks, traders and analysts said.
"It would benefit people who have foreign currency banknotes and traveller's cheques, especially those with big amounts who would be able to bargain for better prices," said a trader.
"Under the new measure, banks would be able to offer better prices by lowering their gain margins but with bigger profits if they would draw larger number of consumers," he added.
The move would have no effect on Morocco's larger foreign investment flows
Tags: Moroccan Morocco Fes, Maghreb news
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