Speculations About Dirham Devaluation Overblown BMI Research

admin djjpct , , , , ,

Rabat – BMI Research is pinning the blame for the delay of the dirham liberalization reform on commercial banks. In its latest report, the Fitch Group company stresses that far from the devaluation speculations, the Moroccan dirham is set to sail on a “smooth and gradual transition towards a free float.”The Moroccan dirham has been the star of local news these past months. Amid talks about a currency liberalization reform, speculations about a sharp depreciation of the dirham have run wild. Despite the constant reassurance of Bank Al-Maghrib, which presented proof of a strong economic fundamentals able to sustain a flexible exchange rate, the mistrust of commercial banks resulted in a rush on currency, draining Morocco’s foreign reserves starting in April 2017.Also Read: All You Should Know About ‘Floating Dirham’In its economic analysis, entitled “Fears Of Disorderly Depreciation Overblown,” BMI Research stresses the risks of speculation facing the planned reform, and its dire consequences. Not only were the Moroccan authorities forced to delay the first phase of the dirham liberalization reform due to these unfounded fears,  the ensuing panic also sparked a “sharp fall in foreign reserves since April 2017.” Between April and June, “reserves fell by 12.4 percent, from USD 24.4 billion to USD 21.4 billion, before stabilising in late July,” notes the company, adding that fears that the perpetuation of this rush on currency would case a further drop in reserves pushed authorities to completely delay the reform for the time being.Sparked by fears of a similar scenario to that of Egypt, the speculations could have serious consequences, according to BMI Research, which states that “a significant loss of reserves would have impaired the central bank’s ability to manage the dirham after allowing greater [fluctuation bonds].”However, the delay of the reform and the drawdown in net international reserves “does not affect BMI’s confident outlook for Morocco to successfully undertake a gradual transition towards a more flexible exchange rate regime.”For BMI Research, the Moroccan central bank has been successful at managing the Dirham peg over the past few years, backed by “the robustness of the Moroccan economy and positive investor sentiment, sharply contrasting with other North African economies which have been forced to allow their currencies to depreciate against their respective baskets.”These factors, combined with a real effective exchange rate broadly in line with its 10-year average, suggest that the currency is not particularly overvalued, and BMI Research “maintains its view that Morocco is in a favourable position to gradually move towards a more flexible exchange rate.”The company stresses that with the Moroccan authorities set to allow only modest fluctuations over the coming months, it sees “limited risks stemming from the liberalisation of the exchange rate regime.”Not only are speculations about a possible sharp devaluation unfounded, according to BMI, on the contrary, the dirham liberalization reform is set to boost the Moroccan economy.“Greater exchange rate flexibility will enable the Moroccan government to further reduce capital controls, which will enhance Morocco’s status as the preferred investor destination in North Africa,” explains the report.The reform is “also consistent with Morocco’s ambitions to increase trade links with African economies, in an effort to become a manufacturing and exporting hub between Europe and Africa.”“A reduced dependence of the dirham to the euro’s fate will increase flexibility and reliance to external shocks,” concludes BMI.

You May Also Like..

No check, please: Restaurants grapple with confusing Covid inspections

first_imgTagsAndrew CuomoBill de BlasioNYC RestaurantsRetail Full Name* Multiple visits from multiple inspectors has led to major issues, according to restaurateurs who’ve been targeted — namely a lack of coordination between agencies, and little knowledge of what to look for when inspecting bars and restaurants.“The inspectors have become regulars with some,” said William Mack, a partner at the law firm Davidoff Hutcher and Citron, which works with restaurant owners. However, “restaurateurs that are in the same neighborhood or on the same block as some others, they’re not inspected at all or a dramatically different number of times.”Depending on the violation it receives, a restaurant may have its liquor license suspended, be forced to pay a fine or be temporarily shut down, all based on inspections by investigators who may never have worked with a restaurant prior to the pandemic.Investigators all have previous experience conducting these types of visits within their respective agencies and receive additional training, according to the SLA. Most inspections are the result of patrols, when investigators walk through designated areas of the city, which can result in multiple visits, the agency said.“While we understand the hardships bar and restaurant owners have faced during this crisis, we are still in a global public health emergency — and protecting New Yorkers must come first,” a spokesperson for the SLA said in a statement. “We will continue to take a smart approach to compliance.”But inconsistencies and unfair inspections happen “often,” according to liquor license lawyer Terrence Flynn, a founding partner of Flynn and Flynn.“If somebody is from the tax department, or the finance department, or DMV or wherever else they may be from, and they don’t deal hands-on with the hospitality industry, you cannot expect them to have the same experience as the State Liquor Authority or even the Department of Health,” Flynn said. “It is difficult for them to understand even what is necessary to make these businesses work.”Andrew Rigie, the executive director of the NYC Hospitality Alliance said that, at times, investigators have provided conflicting information during inspections.“For instance, one inspector will say something’s okay, then [the restaurant will] get a visit from another inspector saying something’s not okay, which creates enormous frustration, but also anxiety, fear and anger, because they’re trying to hang on for survival,” Rigie said.It becomes especially problematic as regulations can change quickly — in some cases within 24 hours.At Fat Buddha, a bar on Avenue A in Manhattan, investigators who visited on Oct. 14 observed “over twenty patrons standing, congregating and drinking directly in front of the business without facial coverings well past the 11 p.m. NYC curfew for outside dining,” the SLA claims.But the owner of the bar has a different story. The bar was in the process of closing when inspectors with the SLA and the police dropped by. A group of about five people was outside saying their goodbyes, while the manager of the bar closed up shop.But the group of people, along with a bottle of champagne one guest was holding — an unopened bottle that the bar doesn’t even sell — drew the inspectors’ attention. The agencies decided that the gathering qualified as a threat to public safety and suspended the establishment’s liquor license.“I do think it was unfair,” said Cliff Cho, Fat Buddha’s owner. “I just feel like the governor’s office is not going to really listen to us.”Even with the anxiety caused by the repeated inspections, many restaurants keep quiet due to fear of retaliation, according Ken Belkin, an attorney at Belkin Law.“It’s a nightmare,” Belkin said. “And the reality is these businesses are being hit with fines that they’re never going to be able to pay, because they’re barely hanging on as is.”Contact the author (iStock) On July 18 at around 4:30 p.m., Bungalow Bar in Rockaway Beach received a visit from the State Liquor Authority. Inspectors from the agency walked through the restaurant with its owners, told a guest to wear a mask when waiting for the bathroom and left. The inspectors didn’t find anything that warranted a citation.But two days later, the Department of Consumer Affairs came to do an inspection of the premises. The day after that, the Mayor’s Special Task Force paid Bungalow Bar a visit.Between that first visit and Aug. 25, Bungalow Bar was visited 11 times by inspectors from various city and state agencies, all conducting Covid-19 investigations. In some cases, the inspections happened daily.The restaurant was never written up for violating coronavirus-mandated safety protocols. Still, the visits were a major source of anxiety, according to owner Terence Tubridy.“I feel like we’re living in a world of prohibition,” Tubridy said.When the pandemic started, the SLA, the agency in charge of issuing liquor licenses, had just 30 investigators, according to data provided to The Real Deal by New York State. Prior to the pandemic, the Department of Health and Mental Hygiene was in charge of health inspections.But as the health crisis raged on, in an attempt to build up the number of bodies available to conduct inspections, the city and state decided to borrow personnel from a variety of government agencies, many of whom had never conducted restaurant inspections before.On the city side, officials from 15 agencies — from the Sheriff’s Department to the Department of Environmental Protection to the Taxi and Limousine Commission — were tapped to help out. On the state side, inspectors were brought in from the Department of Agriculture, the Department of Motor Vehicles, and the Department of Tax and Finance.Read moreEvolving outdoor dining regulations leave restaurants in the cold70 restaurants sue Cuomo over “Kafkaesque nightmare” of regulationsA tale of two logos: Restaurants in CA, NY battle over branding Share on FacebookShare on TwitterShare on LinkedinShare via Email Share via Shortlinkcenter_img Email Address* Share via Shortlink Message*last_img

Celebrating The Vanderburgh County Bicentennial

first_img Celebrating The Vanderburgh County BicentennialJULY 6TH, 2018 ALEXIS BURKHART EVANSVILLE, INDIANAMost people can’t say they celebrate their birthday longer than a day, but when it’s a 200th birthday the circumstances change.People from Vanderburgh County were out celebrating the 200th birthday.County commissioners want to celebrate the big 200 all year long. Their latest event included live music, food trucks, inflatables, and ziplining.The birthday bash was held at the Old Courthouse as a part of their lunch on the lawn series which started back in May.FacebookTwitterCopy LinkEmailSharelast_img

Long Lines for Black Friday

first_imgFacebookTwitterCopy LinkEmailSharelast_img

Leave a Reply

Your email address will not be published. Required fields are marked *