Morocco’s official reserves surge 22.7% to nearly 500 billion dirhams

Monday 31 August 2026 - 14:02

By: Azzat Manal

Morocco’s official reserves surge 22.7% to nearly 500 billion dirhams

Morocco’s monetary indicators continued to show strong momentum in July 2026, with official reserve assets recording a significant annual increase while bank lending to the non-financial sector also accelerated, according to the latest data from Bank Al-Maghrib.

The country’s broad money supply, known as M3, reached approximately 2.195 trillion dirhams in July, representing annual growth of 11.2%. Although this remains a strong pace, it was slightly below the 11.7% recorded in June.

One of the most notable developments was the continued improvement in Morocco’s official reserve assets. Their annual growth rate increased to 22.7%, compared with 22.2% a month earlier. The reserves reached around 497.98 billion dirhams, bringing the country close to the 500-billion-dirham threshold.

The increase strengthens Morocco’s external financial position and provides an additional buffer against potential volatility in international markets. Higher reserves can also improve the country’s ability to meet external payment needs and maintain confidence in its financial stability.

At the same time, bank lending to the non-financial sector gained momentum. Its annual growth rate rose from 9.8% in June to 10.1% in July, indicating continued expansion in financing for households, businesses and economic activities.

Credit growth remains an important indicator for the domestic economy because stronger lending can support corporate investment, household consumption and the financing of productive activities. Net claims held by deposit-taking institutions on central government also accelerated, with their growth rate increasing from 2.6% to 5.7%.

The overall expansion of monetary aggregates was nevertheless accompanied by different trends across individual components. Currency in circulation outside banks grew by 18%, slightly below the 18.4% recorded in June.

Holdings of monetary collective investment funds also experienced a notable slowdown, with annual growth falling from 41.1% to 20.3%. This suggests that the increase in overall liquidity was not evenly distributed across all forms of monetary savings and investment.

Bank deposits remained relatively resilient. Demand deposits maintained annual growth of around 11.2%, while savings accounts accelerated slightly from 4.4% to 4.6%. At the same time, the decline in term deposits moderated considerably, narrowing from 5.5% to 2.2%.

The figures point to continued demand for liquid assets and traditional bank deposits, while also indicating shifts in the way households and other economic actors allocate their savings among different financial products.

From an institutional perspective, monetary assets held by households grew by 9.1%, down slightly from 9.4% in June. For private non-financial corporations, annual growth slowed more noticeably, from 17% to 13.6%, largely reflecting slower growth in demand deposits and holdings of monetary investment fund securities.

Taken together, the July figures present a picture of an economy characterized by solid monetary and credit activity, supported by stronger bank financing and a substantial increase in official reserves. The modest slowdown in M3 growth and certain savings components, however, shows that monetary expansion is not uniform across the economy.

The combination of rising reserves and sustained credit growth will remain closely watched during the second half of 2026. For Morocco, maintaining sufficient financing for businesses and investment while preserving monetary and external stability will be key to sustaining economic momentum.