The adoption in November 2005 of the Statutes of Bank Al-Maghrib represented a turning point for monetary policy in Morocco. This Act confers to the Bank independence in defining and conducting monetary policy and entrusts the Bank with the primary mission of preserving price stability.
The independence of the central bank is mainly reflected in:
- The composition of the Bank Board: In addition to the Governor, as chairman of the Board, the Director General, the Director of Treasury, and six independent members of recognized competence in monetary, financial or economic fields.
- The Director of Treasury takes part in the Board meetings, as a representative of the Ministry of Finance, but does not take part in voting on monetary policy decisions.
- The restriction of the Treasury’s access to BAM financing, except in exceptional circumstances where a cash facility may be granted but not exceeding 5 percent of the tax revenues of the last financial year. However, it should be noted that since the new Status entered into force, this provision has never been used. The Treasury is being finances according to market conditions, like other economic units.
- Financial autonomy
As a corollary to this independence, Bank Al-Maghrib exerts every effort to ensure greater transparency of its monetary policy decision and facilitate its understanding by the general public, as well as improve the content and frequency of communication. In addition, it ensures rigorous analysis and medium-term forecasts that underpin its decisions and develops its regular contact with all stakeholders.