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Economy

Moroccan Diaspora Remittances Exceed $10.65 Billion in November, Bolstering Economic Resilience

Saturday 30 December 2023 - 11:05

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In a promising development for Morocco's economy, new data from the Exchange Office reveals that remittances from the Moroccan diaspora have reached an impressive MAD 105.4 billion, equivalent to $10.65 billion as of November. This figure represents a notable 4.4% increase compared to the same period last year, underscoring the resilience of Morocco's economic landscape.

The significance of diaspora remittances extends beyond their monetary value. These substantial inflows play a pivotal role in bolstering Morocco's hard currency reserves, projected to reach MAD 360.9 billion, or $36.4 billion, according to Morocco's central bank. Such a robust reserve will enhance the country's financial stability, enabling it to navigate potential economic challenges with confidence.

The remarkable growth in remittances from Moroccans residing abroad is becoming a recurrent trend. In the previous year, remittances set a new record, surging to MAD 109.15 billion ($11 billion), representing a remarkable 16.5% increase compared to the corresponding period. This upward trajectory is projected to continue, with the central bank forecasting a surge to MAD 112.8 billion ($11.40 billion) by the end of 2023.

The World Bank shares the optimism surrounding Morocco's diaspora remittances, expecting an 8.6% rise this year. Their latest forecast predicts a total of $12.1 billion in remittances, further solidifying the positive trajectory of this economic phenomenon. These additional funds, combined with international aid, are poised to act as a lifeline, helping to offset the repercussions of natural disasters, as emphasized in a recent World Bank report.

The report underscores the pivotal role played by remittances in mitigating the costs of reconstruction and fortifying Morocco's external financial stability. While the Middle East and North Africa (MENA) region experiences a decline in remittances overall, Morocco emerges as an exception, defying this trend. The sustained growth of remittances from Moroccans abroad not only bolsters the country's economic prospects but also strengthens its resilience in an ever-changing global landscape.

As Morocco continues to foster connections with its diaspora, these remittances serve as a testament to the enduring bond between the nation and its citizens beyond its borders. The financial contributions of Moroccans abroad demonstrate their unwavering commitment to supporting their homeland's development and prosperity.

With remittances assuming an increasingly pivotal role in Morocco's economic fabric, the country stands poised to harness this inflow of funds to propel its progress while ensuring the well-being of its citizens. As the year progresses, all eyes will be on Morocco, eagerly observing the transformative power of diaspora remittances and their enduring impact on the nation's economic landscape.