Bank Al-Maghrib - Afrikan Heroes

Morocco Gets Set To Welcome New Crypto Law, To Open Up Space

January 8, 2023

The first cryptocurrency bill could be introduced in Morocco “in the coming days.” The Central Bank has already drafted the document, which will be discussed with industry players.

Abdellatif Jouahiri, the governor of Bank Al-Maghrib (BAM), the central bank of Morocco, launched a series of discussions between BAM and market participants on January 3 during a news conference. Regulators including the Insurance and Social Security Supervisory Authority (ACAPS) and the Moroccan Capital Markets Authority (AMMC) will also take part. It will go into effect before the cryptocurrency law does.

He claims that throughout the writing of the document, the BAM worked with the World Bank and the International Monetary Fund. According to earlier reports, Moroccan officials have also gotten in touch with the central banks of France, Sweden, and Switzerland to learn more about how they have handled the regulation of digital assets.

The initiative will put forth a definition of cryptography that is “tailored to the Moroccan context” with the intention of safeguarding people without impeding innovation. Although the bill’s specifics have not been made public, it could scarcely be more restrictive than the law as it is now, which forbids all cryptocurrency trade.

Morocco was the fastest-growing crypto market in North Africa in 2022, with ownership of digital assets rising from 2.4% of the population in 2021 to 3.1% a year later. The first blockchain-powered wind farm was installed by Soluna in 2020 in Dakhla, Morocco’s windiest and southernmost region. Mining operations for cryptocurrencies are powered by excess electricity from this farm.

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Plesion Capital Launches, To Invest In Early Stage African Startups

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
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Moroccan Central Bank Governor Frustrated Over Fitch Downgrade

December 17, 2020

The Governor of the Central Bank of Morocco, Bank Al-Maghrib has launched an attack at the Fitch Rating Agency for the new downgrade handed down to Morocco described it as unprofessional and unethical even as Morocco prepares to issue a bond on the international financial market. Abdellatif Jouahri, the wali was quoted as saying that he is frustrated with Fitch Ratings’ downgrade of Morocco. It could be recalled that in October, the US credit rating agency downgraded Morocco’s default rating for long-term foreign currency bonds from BBB- to BB+. While Fitch said it considers Morocco’s outlook stable, the BB+ rating gave Morocco’s long-term foreign currency bonds a junk bond status.

The Fitch downgrade also cost Morocco its investment grade rating. The loss of the investment grade rating means Fitch considers that Morocco’s chances of defaulting on long-term foreign currency bonds have increased. Morocco’s dollar bonds spiraled, dropping 2.2 cents to reach a significant low of 121 cents on the dollar. Fitch also forecast that Morocco is likely to widen its deficit from 4.1% of GDP to 7.9% amid the COVID-19 pandemic. “We were very surprised by the degradation of Morocco’s rating,” Jouahri said. He emphasized that the agency had maintained Morocco’s investment grade rating less than six months prior.

To “suddenly change the position” six months later, “in a context where the whole world is going through an unprecedented crisis and especially on the eve of Morocco’s exit from the international financial market is neither professional nor ethical,” he continued.

Jouahri argued that if Fitch wants to downgrade a rating, it should not do so on the eve of a country issuing a bond on the international financial market. Still, Morocco was able to successfully issue a $3 billion bond on the international market in December, the central bank governor said, and “the market reacted very positively.”

He admitted that Morocco’s central bank had doubts about issuing the $3 billion bond because of the Fitch downgrade, the loss of the investment grade rating, and overall unfavorable conditions. But, he said, “Market conditions improved, probably linked to the announcement of vaccination operations.” In November, King Mohammed VI ordered a nationwide vaccination COVID-19 campaign to help Morocco continue its economic recovery. Morocco will first use the Chinese-made Sinopharm vaccine to inoculate front-line workers and high-risk populations.

Jouahri said Morocco strategically issued the bond on the international market at a time when there was excess liquidity in the markets. Morocco was thus able to benefit from favorable conditions in terms of rates and maturities despite the Fitch downgrade.

“This success was also seen at the level of demand. The volume requested by international investors was $13 billion,” Jouahri said, more than four times its total value, from 478 investors from the US, the UK, Europe, Asia, and the Middle East. Morocco’s $3 billion bond came just over two months after it issued a €1 billion bond with two €500 million tranches. The economy ministry said the issuances were each a resounding success among international investors.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Moroccan Banks Gave Out More Loans During COVID-19 Crisis

September 8, 2020

Bank loans in Morocco recorded a 5.8% increase in the first seven months of 2020, compared to the same period in 2019. This was the submission of the central bank, Bank Al-Maghrib, which announced the increment recently in a note on monetary statistics.

Loans granted to private companies operating in non-financial sectors recorded the highest increase, with 9.2% between 2019 and 2020. Between July 2018 and 2019, this type of loan recorded an annual increase of 7.7%. Public non-financial institutions also obtained more loans than ever. In the first seven months of 2020, their loans increased by 6% compared to the same period of 2019. Last year, public non-financial establishments’ loans only grew by 2.7% from 2018.

The overall bank loans granted to organizations in Morocco’s private sector rose by 5.8% between July 2019 and 2020. Between 2018 and 2019, the amount increased by 5%. Finally, the bank loans granted to households in Morocco increased by 2.1% by July 2020. The figure is similar to the increase recorded between 2018 and 2019.

The COVID-19 crisis is one of the main factors behind the significant annual increase in bank loans in Morocco. The measures that the country’s Economic Monitoring Committee implemented also encouraged businesses to take loans.

In May, the committee established a loan guarantee plan that the state treasury financed. The system covers all Moroccan companies, both public and private, that sustained negative impacts due to COVID-19. Under the plan, businesses can apply for loans to cover their operational costs with a maximum interest rate of 4%. The repayment of the loans can be spread over a period of seven years, with a grace period of two years.

Figures from late May showed that Morocco’s loan guarantee plan, “Damane Oxygene,” helped 17,600 companies avoid bankruptcy. The bank loans amounted to MAD 9.5 billion ($966 million) and benefited businesses operating all over Morocco.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry