Morocco is proposing new banking and financial reforms, which will include further independence for the central bank:
Moroccan government is proposing a draft law that gives the country’s central bank much more independence and prepares it for major financial reforms and a more flexible currency exchange system.
The North African kingdom is set to allow the creation of Islamic banks and enable private firms to issue Islamic debt, after parliament approved and Islamic finance bill last November.
It also released a decree to create a sharia board of Islamic scholars to oversee the country’s fledgling Islamic finance industry.
But the move to boost the central bank’s power is also linked to demands by the International Monetary Fund for Morocco to adopt more exchange rate flexibility to make its economy more competitive and better able to absorb shocks.
“It (the draft law) bans the central bank from asking for or receiving orders from the government or from someone else” a text released on the Government General Secretariat website on Wednesday, said…[Full Story]