Rating Agencies (Official Links)
Moroccan Institutions (Official Links)
1) What Do Rating Agencies Do?
Agencies assign a sovereign rating (e.g., AA, BBB, B…) that reflects fiscal stability, growth, inflation, foreign exchange reserves, political stability, and the risk of extreme events. This rating summarizes the credit risk of a state.
- For the State: A better rating reduces borrowing costs on international markets.
- For Businesses: Access to external financing becomes easier and cheaper.
- For Households: Lower interest rates support investment, jobs, and purchasing power in the medium term.
2) Concrete Impact on the Economy (Morocco Example)
Morocco is known for its prudent macroeconomic management and the stability of its institutions. This perception leads to sustained market confidence and regular access to international financing. When the rating is stable or improves, the Treasury can borrow at more favorable costs, and Moroccan companies benefit from a spillover effect.
3) Morocco – Egypt – Jordan: What Ratings & GDP Per Capita Show
To properly read a rating, remember it reflects a balance between growth potential, fiscal discipline, and risks. For illustration:
Morocco
- Credible monetary framework (Bank Al-Maghrib) and controlled inflation in recent trends.
- Progressive diversification (automotive, aerospace, phosphates, renewable energy).
- Sovereign rating generally higher than several regional neighbors.
Egypt
- Greater dependence on external financing needs and currency volatility.
- Inflationary pressures and more frequent political adjustments.
- Ratings often lower than Morocco, reflecting a higher perceived risk.
Jordan
- Resilient economy but dependent on geopolitical factors and external remittances.
- Strong institutional framework, moderate growth.
- Rating level close to Morocco's depending on the period.
👉 Reading Tip: Combine the rating and the GDP per capita to assess the average level of wealth and risk perception. Morocco stands out with an upward trend in its GDP per capita over ten years and a relatively solid rating in its region.
4) What is GDP Per Capita?
GDP per capita is the total value of goods and services produced in the country in a year, divided by the population. It's not an average salary, but a useful indicator to compare wealth between countries. For Morocco, the rise in GDP per capita reflects its industrial up-scaling, infrastructure, and reforms.
5) Currency Policy & The Foreign Exchange Office (for Individuals)
The Office des Changes (Foreign Exchange Office) sets the rules for the use of foreign currencies and monitors capital outflows to protect the balance of payments and financial stability. Individuals have annual quotas (for travel, e-commerce, medical treatment, studies, etc.) that are managed through banks.
Limits and Authorizations for Individuals
- Standard Allocations: An annual limit (varying by purpose) for foreign currency purchases, withdrawals, or payments abroad.
- Supporting Documents: Passport, tickets, invoices, school enrollment certificates (studies), medical quotes, etc., depending on the reason.
- Exceptions: Possibility of requesting a specific authorization through your bank, which forwards the request to the Foreign Exchange Office.
- Controls: The bank and the Foreign Exchange Office verify the proper use of foreign currency (compliance and anti-money laundering rules).
Good to know: The rules are evolving (digitalization, simplification). Check with your bank or the Foreign Exchange Office for the current limits and required documents.
6) Morocco: Strengths, Challenges, and Roadmap
Strengths
- Institutional stability and monetary credibility.
- Export-oriented value chains (automotive, aerospace, phosphates) and renewable energy expansion.
- Logistical infrastructure (ports, industrial zones) and diversified trade agreements.
Challenges
- Dependence on certain imports (energy, cereals) and vulnerability to external shocks.
- Need to accelerate productivity, inclusion, and digital transformation.
- Deepening of capital markets and continued formalization.
What Morocco has Achieved & Aims to Achieve
- Prudent macroeconomic and monetary reforms (independent central bank, anti-inflation framework).
- Export-oriented industrialization, quality improvement, and energy transition.
- Digitalization of public services (including the Foreign Exchange Office) and simplification of procedures.