Latest news with #BankAlMaghrib
Asharq Al-Awsat
25-06-2025
- Business
- Asharq Al-Awsat
Morocco's Central Bank Keeps Interest Rate Steady at 2.25%
Morocco's Central Bank (Bank Al-Maghrib) has maintained its benchmark interest rate unchanged at 2.25%, stating that current borrowing cost levels remain consistent with inflation expectations. In a statement issued following the quarterly meeting of its board of directors on Monday, the bank explained that the average inflation rate is expected to reach 1% in 2025, supported by a decline in food prices, before gradually rising to 1.8% in 2026. The statement noted that the outlook for the national economy remains surrounded by a high degree of uncertainty, due to ongoing geopolitical tensions, fluctuations in global trade policies, and the volatile performance of the domestic agricultural sector. Domestically, according to annual national accounts data released by the High Commission for Planning, the Moroccan economy grew by 3.8% in 2024, a much faster pace than indicated by the quarterly data for the same year. According to Bank Al-Maghrib's forecasts, economic growth is expected to accelerate to 4.6% in 2025, before stabilizing at 4.4% in 2026. The agricultural sector's value-added is projected to rise by 5% in 2025, driven by an estimated cereal harvest of 44 million quintals, according to the Ministry of Agriculture, and by 3.2% in 2026, based on an assumed average output of 50 million quintals. As for non-agricultural sectors, supported by ongoing investment in infrastructure, they are expected to grow by approximately 4.5% in both 2025 and 2026. Regarding external accounts, trade exchanges are expected to improve gradually over the medium term, with the direct impact of US tariffs remaining limited. Export growth is estimated at around 5.1% in 2025 and 9% in 2026, driven particularly by increased exports of phosphate and its derivatives, which are projected to reach 106.7 billion dirhams by 2026.
Coin Geek
25-06-2025
- Business
- Coin Geek
VPS, Mastercard team up to advance digital payments in Morocco
Getting your Trinity Audio player ready... Vantage Payment Systems (VPS), a Morocco-based payment services company, has entered into a collaboration with Mastercard (NASDAQ: MA) to enhance the state of digital payments in the North African country. According to a report, the collaboration will seek to improve financial inclusion metrics in Morocco while offering a raft of upsides to both parties. The partnership will see Mastercard grow its market share in Morocco via the addition of Mastercard-branded cards across several verticals. A glance at the statement indicates an expansive plan to integrate Mastercard offerings in local e-commerce and in-app payments for consumers. Mastercard will leverage VPS's local infrastructure and merchant relationships to deepen its footprint in Morocco. On the flip side, VPS will reap the reward of brand credibility from its Mastercard partnership. The payment institution, licensed by Bank Al-Maghrib, is tipped to have access to Mastercard's cybersecurity and fraud detection tools. Both parties confirm plans to roll out joint offerings for the local market with a blockchain-based tokenization product at the top of the pile. The collaboration will also launch support for digital wallets while aligning the local fintech scene with international best practices. 'This collaboration with Mastercard marks a significant milestone in our mission to digitally transform the payments landscape in Morocco,' said VPS President Ali Bettahi. The biggest winner from the Mastercard-VPS partnership is the local payment scene in Morocco. With broader payment options spanning physical and digital tools, merchants and consumers can transact seamlessly. Morocco has made significant strides in the quest for digitization, turning to emerging technologies to improve local payments. The country is warming up toward digital assets, inching toward new legislation to overturn its seven-year digital currency ban. Africa embraces emerging technologies for payments Africa's payment landscape is transforming, with leading economies shifting to emerging technologies. A Mastercard report predicts that digital payments in Africa will surge to $1.5 trillion by the end of the decade, but warns of a spike in fraudulent transactions. Conversely, African cross-border transactions powered by digital payment systems are expected to grow by a double-digit compound annual growth rate (CAGR) before 2030. At the core of the changes is a push to improve local financial inclusion metrics for non-banked and underbanked individuals. Digital asset remittances in Latin America climb 40% In other news, a new Chainalysis report has highlighted the growth of digital asset-based remittances to Latin America in a trend powered by various factors. Digital currency-based remittances have spiked by over 40% in the last 12 months. The report, a collaborative effort between Chainalysis and the Australian Transaction Report and Analysis Center (AUSTRAC), mentions stablecoins as the main driving force. Stablecoin adoption has grown by leaps and bounds in Latin America from a niche asset class to mainstream acceptance. The growth metrics around stablecoins in Latin America lie in their utility, providing a crucial lifeline for struggling economies in the region. Latin American countries are turning to stablecoins to fight against inflation and currency devaluation, with Brazil and Argentina recording the largest figures. Apart from using stablecoins to hedge their wealth, residents in the region are drawn by the broad payment functionalities of the asset class. At the top of the list is the speed of cross-border payments with stablecoins, sidestepping traditional challenges associated with remittances. Another reason behind the surge in stablecoin metrics is the warm embrace by the U.S. toward the asset class, with the White House vowing to back stablecoins to protect the sovereignty of the U.S. dollar. Without steady access to physical dollars, investors are piling into stablecoins to solve their cross-border transaction challenges. The rise of digital asset ATMs is another growth driver for cross-border remittances in Latin America. According to a report, Latin America has experienced a regional boom in digital asset ATMs, snagging a slice of the global market capitalization. Less tech-savvy individuals are turning to digital asset ATMs to bypass third parties and their steep fees for cross-border transactions. Mexico, Panama, Colombia, and Argentina are recording the most significant growth for cross-border transactions via digital asset ATMs. Latin America is poised to contribute to global digital payment metrics Latin America is making its mark in digital payment metrics, rising from the lowest rung to becoming the fastest-growing region. Several government factors are backing their growth, with Brazil's Pix turning to automated payments to rake in an additional $30 billion in transaction volume. Furthermore, Latin America focuses on regional and global partnerships to trigger a growth spurt for digital payments. Peru has inked a deal to introduce India's Unified Payment Interface (UPI) into its payments ecosystem. Watch: Small casual payments transforms content creation business title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Morocco World
24-06-2025
- Business
- Morocco World
Morocco Central Bank Holds Interest Rate Steady at 2.25%
Rabat — Morocco's central bank, Bank Al Maghrib (BAM), decided Tuesday to maintain its key interest rate unchanged at 2.25%, citing inflation levels consistent with medium-term price stability goals and accelerating non-agricultural growth. BAM board, meeting in Rabat for its second quarterly session of 2025, announced the decision following careful consideration of economic indicators and future uncertainties. 'Taking into account the evolution of inflation at levels consistent with the medium-term price stability objective, the tangible acceleration of non-agricultural growth, and the stabilization of expectations, the board decided, given the strong uncertainties surrounding the outlook, to keep the key interest rate unchanged at 2.25%,' the central bank said in a statement. The decision aligns with a cautious approach amid what officials describe as significant uncertainties in the economic forecast in Morocco and developing economies. The bank further pointed out that inflation has remained within acceptable parameters aligned with their price stability targets, while the country's non-agricultural sectors have shown notable growth momentum. The central bank indicated it will continue monitoring the transmission effects of its recent interest rate cuts, particularly focusing on how these changes impact financing conditions for very small, small, and medium-sized enterprises. This sector has been a key focus for Moroccan policymakers seeking to stimulate broader economic growth. BAM further said that its future monetary policy decisions will be made on a meeting-by-meeting basis, with each determination based on the most current available economic data and market conditions. The decision to hold rates steady comes as Morocco, like many developing economies, navigates a complex global economic environment marked by persistent inflationary pressures and uncertain growth prospects. The central bank's measured approach suggests officials are balancing the need to support economic expansion while maintaining price stability. Morocco's monetary policy stance will continue to be closely watched by investors and businesses, particularly small and medium enterprises that rely heavily on bank financing for their operations and expansion plans. Read also: BAM: One in Four Moroccan Businesses Uncertain About Future Industrial Trends Tags: BAMeconomyinterest rateMorocco's central bank
Zawya
15-05-2025
- Business
- Zawya
Standard Chartered opens representative office in Morocco
Subject to regulatory approvals, Cynthia El Asmar appointed CEO and Head of Coverage Casablanca, Morocco – Standard Chartered today announced the opening of its new representative office in Morocco, further expanding its footprint across the Middle East and North Africa region. The launch follows the licence approval from Bank Al-Maghrib and the award of the Casablanca Finance City status by the Casablanca Finance City Authority. The representative office will be led by Cynthia El Asmar, who has been appointed CEO and Head of Coverage for Morrocco, subject to regulatory approvals. She brings extensive experience in client coverage across the region and will be responsible for driving the Bank's local strategy and deepening client relationships. This expansion underscores Standard Chartered's long-term commitment to the region and reflects its strategy of supporting clients in high-growth, internationally connected markets. Morocco's strong economic fundamentals and strategic location position it as an increasingly important destination for global trade and investment. Rola Abu Manneh, Chief Executive Officer, UAE, Middle East and Pakistan said: 'Our global network, sector expertise and financing capabilities mean that Standard Chartered is uniquely positioned to support Morocco's ambitious growth agenda. We would like to extend our sincere gratitude to Bank Al-Maghrib and the Casablanca Finance City Authority for their invaluable support in enabling the successful opening of our representative office. This launch reinforces our commitment to connecting clients to high-growth markets across continents and supporting regional economic development.' Cynthia El Asmar, CEO and Head of Coverage for Morocco added: 'Morocco's location positions it favourably as a bridge between Europe and Sub-Saharan Africa. Structural reforms continue to improve the country's capacity to attract FDI and enhance its overall competitiveness, leaving it well placed to benefit from any adjustment in trade flows or realignment in global supply chains. We are delighted to establish our office in Morocco and are ready to support our clients capture the many growth opportunities the country has to offer.' Standard Chartered's new representative office Morocco follows the launch of a fully-fledged banking operation in Egypt in early 2024 and Saudi Arabia in 2021. The office will enable Standard Chartered to broaden and deepen relationships with international businesses, particularly in the agro-industrial, automotive, aeronautics, and renewable energy sectors. Morocco is the sixth largest economy in Africa. Its economy expanded 3.2 percent in 2024 and GDP growth is expected to increase to around 3.7 percent over the next few years. This is supported by a new series of infrastructure projects and the continued implementation of the country's structural reform agenda. [1] Over the past decade, Standard Chartered has collaborated closely with the banking sector in Morocco, developing strong relationships with all major players. The representative office will serve as a platform to deepen those partnerships and deliver tailored banking solutions to multinational and regional clients. For further information, please contact: Wasim Benkhadra Head of Communications, UAE, ME & Pakistan and Africa Corporate & Investment Banking Communications Lead Standard Chartered About Standard Chartered We are a leading international banking group, with a presence in 53 of the world's most dynamic markets. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good. Standard Chartered PLC is listed on the London and Hong Kong stock exchanges. For more stories and expert opinions please visit Insights at Follow Standard Chartered on X, LinkedIn, Instagram and Facebook. [1] April 2025: IMF 2025 ARTICLE IV.
Morocco World
03-03-2025
- Business
- Morocco World
Fitch Solutions: Moroccan Economy to Grow 5% in 2025 Despite Agricultural Headwinds
Doha – Morocco's economy is projected to accelerate to 5.0% growth in 2025, up from 3.3% in 2024, despite headwinds from a weak agricultural sector, according to a report published by Fitch Solutions on February 26. BMI, a Fitch Solutions company, has revised its previous forecast of 5.6% down to 5.0%, primarily due to 'emerging signs that agricultural production will fall below historical averages.' Nevertheless, the forecast remains 'notably optimistic' and continues to exceed the Focus Economics consensus of 3.9%. 'We project strong growth in the non-agricultural sector driven by solid investment, supported by Bank Al Maghrib's accommodative monetary policy and substantial FDI inflows, particularly in the autos, aerospace, and renewable energy sectors,' the report states. Investment is expected to be a pivotal driver of growth, sustained by ongoing rate cuts and robust foreign direct investment inflows. Bank Al Maghrib, Morocco's central bank, will maintain an accommodative monetary policy with 'an additional 25 basis point decline in the policy rate in 2025 after 50bps worth of cuts in 2024, bringing the policy rate to 2.25% by the end of year.' This monetary policy is expected to stimulate private investment by lowering borrowing costs, with bank lending rates at their lowest since Q1 2023, averaging 5.1% in Q4 2024. The report specifies that Morocco's strategic location, favorable operating environment, and infrastructure investments for the 2030 World Cup (co-hosted with Spain and Portugal) will continue to drive substantial foreign capital inflow, with net FDI having increased by 55.4% year-on-year in 2024. Household spending, tourism, trade Private consumption is forecasted to remain relatively robust in 2025 due to three main factors. First, the government's expansionary fiscal policy, which includes an 11.5% increase in expenditures on personnel and public-sector wages, will enhance household consumption. Second, low inflation, averaging 1.6% in 2025, will help maintain consumer purchasing power. Third, remittances growth is expected to remain steady given stronger growth in Europe, home to more than 80% of Moroccans living abroad. However, these positive factors will be constrained by sluggish growth in the agricultural sector, which employs almost 30% of the labor force. This is likely to keep the unemployment rate around its current level of 13.3%, limiting further gains in household income and purchasing power. The contribution of net exports to growth is anticipated to be near zero in 2025. While accelerating growth in Europe (from 1.3% in 2024 to 1.5% in 2025) and continued strong performance of the tourism sector will boost demand for Moroccan exports, this will be offset by rising agricultural imports and contained growth in agricultural exports. 'The tourism sector, supported by the hosting of the African Cup of Nations in December 2025 and stronger growth in Europe, the main geographical source of Morocco's tourists, will see the number of tourist arrivals rise from an estimated 16.8 million in 2024 to 17.8 million in 2025,' the report notes. The report also addresses potential risks, stating, 'While we remain bullish on Morocco's economic prospects, risks are predominantly on the downside.' These include an even weaker-than-expected agricultural season, which could impede growth by maintaining elevated unemployment rates and increasing import needs further. Geopolitical tensions, particularly between Israel and Iran, could drive up oil prices and exert inflationary pressures. Additionally, lower-than-expected growth in Europe resulting from US trade policies would reduce demand for Moroccan goods and services, especially automotive and textile exports. Regarding US trade policies, the report mentions that if the US administration expands the list of strategic goods subject to tariffs to target imports of semiconductors, the impact on Morocco would be limited since 'Morocco's semiconductors exports to the US are about 0.5% of its total nominal exports and equivalent to 0.2% of GDP.' Despite these challenges, the overall outlook for Morocco's economy in 2025 remains positive, with growth expected to accelerate significantly from 2024 levels, driven primarily by the non-agricultural sectors of the economy. Tags: Fitch SolutionsMoroccan Economy
