In particular, it ceased direct credit and foreign exchange allocation, reduced trade barriers, restrained government spending, and embarked on a privatization program. With the inflation rate averaging less than three percent in the 1990's, monetary growth has remained steady in recent years. Foreign exchange reserves have been rebuilt since dipping during the drought of the middle part of the decade. Broad money grew by about eight percent in 1997. The Moroccan government has made a concerted effort to reduce its budget deficit in recent years.
Foreign exchange is available through the commercial banks on presentation of appropriate documents.
Foreign firms have complained about the complexity of remaining restrictions on foreign exchange. Private Moroccan resident individuals face several foreign exchange restrictions. The Central Bank currently sets the exchange rate for the dirham against a basket of currencies of its principal trading partners. The rate against the basket has been steady since a nine percent devaluation in May 1990, with changes in the rates of individual currencies reflecting changes in cross rates. Some economists feel the dirham may be over-valued against European currencies, but the government has ruled out a devaluation.