On March 17, 2023, Morocco announced its potential plan to tap into a flexible credit line of $4.5 billion (approximately €3.9 billion) provided by the International Monetary Fund (IMF) if oil prices exceed $120 per barrel, which could be a consequence of the ongoing conflict in Iran. This declaration was made by Abdelatif Jouahri, the governor of Bank Al-Maghrib, during a press conference following the quarterly meeting of the central bank's board of directors.
Jouahri emphasized that Morocco is poised to activate this credit line "immediately and without any preconditions" should there be a spike in prices that puts pressure on its foreign currency reserves. He clarified that the nation would not resort to this option with oil prices hovering around $80 per barrel, as it currently holds six months' worth of currency reserves. However, should prices rise to $100 or $120, the government would seriously consider utilizing the available funds.
Morocco secured this flexible credit line with the IMF in April 2025 for a two-year duration, highlighting its purpose of safeguarding the country against external shocks. Previously, in 2020, Morocco utilized another credit line worth $3 billion from the IMF to bolster its foreign reserves and navigate the economic challenges posed by the COVID-19 pandemic.
The recent uptick in oil prices has already resulted in increased fuel costs for consumers, with diesel being sold at €1.2 per liter and gasoline at €1.4 per liter in Morocco this week. The situation underscores the delicate balance the country must maintain as it navigates economic pressures both domestically and internationally. As reported by swissinfo.ch.
