Morocco: emerging resilience in the face of global shocks

Faced with global financial shocks, Morocco is strengthening its resilience through sound economic policies. As international financial turmoil intensifies, Morocco illustrates how emerging countries can better withstand crises by improving their policy frameworks and developing their local financial markets. Historically, episodes of risk aversion have hit emerging economies hard, causing massive capital outflows, currency depreciation, and tighter financial conditions. But the landscape has changed. As the IMF notes in its latest report, “ Emerging Market Resilience: Good Luck or Good Policies?” Global Economic Outlook, October 2025 ”, Morocco, a beneficiary of the IMF’s Flexible Credit Line, is one of those economies that have been able to strengthen their capacity to absorb external shocks.
This credit line, reserved for countries with strong fundamentals, has helped to boost investor confidence and stabilize financial conditions during periods of turbulence.
Morocco’s resilience is no accident. The IMF emphasizes that “ improvements in policy frameworks have played an important role ”: Morocco has made progress in several key areas. Firstly, it is worth noting the increased independence of Morocco’s central bank (Bank Al-Maghrib). The central bank has gained credibility, with a monetary policy that is more firmly anchored in price stability and less sensitive to fiscal pressures, and thanks to the development of the dirham bond market. The country has increased its capacity to finance its debt in local currency, reducing its vulnerability to foreign exchange fluctuations. Finally, there is a more transparent fiscal framework. The adoption of fiscal rules has improved the predictability and credibility of fiscal policy.
A notable development concerns the structure of Morocco’s debt. As the IMF notes, the share of debt issued in local currency and held by foreign investors has fallen to levels not seen in several years.
This trend is beneficial for financial stability. The IMF’s analysis shows that greater domestic debt holdings “ reduce the sensitivity of emerging markets to global shocks ”. For Morocco, as for other emerging economies, challenges remain. The IMF recommends that emerging countries continue with reforms and consolidate their foundations in order to transform hard-won resilience into lasting stability.
Fatim-Zahra TOHRY