Crypto-assets, overdue debts, monetary easing… the gist of Jouahri’s press briefing [Vidéo]

The Wali of Bank Al-Maghrib (BAM), Abdellatif Jouahri, held a press conference in Rabat on Tuesday following the last annual meeting of the BAM Council.

On the agenda: the regulation of crypto-assets, the management of overdue debts and the cycle of monetary easing, all subjects which reflect the priorities of the Kingdom’s monetary policy.

Clear regulations for crypto-assets

Jouahri announced that the legal framework for crypto-assets in Morocco is being adopted. This aims to regulate this ecosystem while encouraging financial innovation. Developed in collaboration with the International Monetary Fund (IMF) and the World Bank, this framework aims to be balanced, taking into account the recommendations of the G20 and the risks inherent to these assets.

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“We wanted to regulate the use of crypto-assets without slowing down innovation,” underlined Jouahri. This regulation, the result of extensive consultation with national and international institutions, positions Morocco among the first developing countries to offer a comprehensive and secure approach for these new financial instruments.

Dynamics in the bad debt market

The Wali of BAM also highlighted the progress made in the management of non-performing loans, citing the recent securitization operation of 400 million dirhams carried out by a Moroccan bank. This success illustrates the potential of the secondary market for overdue debts, which could become an essential lever for strengthening the solvency of banks and improving their capacity for intervention.

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“The structuring of this market will make it possible to streamline the balance sheets of financial institutions and support the national economy,” he said. A finalized legal framework is being implemented to guarantee the sustainability of this dynamic.

A prudent reduction in the key rate

The BAM Board decided to reduce the key rate by 25 basis pointsnow setting it at 2.5%. This decision reflects the controlled evolution of inflation and the objective of price stability.

However, the Kingdom’s financier called for caution regarding the continuation of the cycle of monetary easing. “We evaluate meeting after meeting based on the most recent data,” he said, warning against uncertainties linked to inflation and international economic tensions.

An exit on the financial markets postponed

Finally, Jouahri confirmed that Morocco’s next exit on the international financial markets is now planned for the first quarter of 2025. Initially planned for the end of 2024, this operation has been postponed in order to guarantee optimal rate and subscription conditions.

The Central Bank works closely with the Ministry of Economy and Finance to choose the right time and define the best maturity conditions, between long and medium options, underlined the Wali.