The Bank Al-Maghrib is the central bank of the Kingdom of Morocco. It was founded in 1959, and is based in Rabat. It holds reserves of foreign currency with an estimated worth of USD 36 billion (2008 worth). In addition to currency management, the Bank Al-Maghrib also supervises a number of privatized banks supplying retail services.

The Bank is a member of the Alliance for Financial Inclusion and active in promoting financial inclusion policy.

History
The central bank of the Kingdom of Morocco, named "Bank Al-Maghrib", is a public legal entity endowed with financial autonomy. It was created in 1959 in substitution for the former "Banque d'Etat du Maroc". Opening in January 1906 in Algesiras of an international conference in order to preserve the independence and the integrity of the Kingdom of Morocco, to ensure free trade and economic equality between the foreign powers and to consider a plan of reform of its administration and finance.

Establishment of the "Banque d'Etat du Maroc" by the Algesiras act signed on April 7, 1906 by the representatives of 12 European countries, the United States and Morocco.

The Bank was founded in February 1907 as a public limited company whose registered office was based in Tangier. Its capital was distributed between the countries represented at the conference except the USA.

Subsequently, France acquired the majority of the Bank's capital through the purchase of some founding countries' shares. Being entrusted with some of the functions of a central bank, the "Banque d'Etat du Maroc" started in 1911 silver coins' minting, of "Hassani" type, and the issuing of the first banknotes. Because it was impossible to maintain a forced parity between the Hassani currency and the French currency in circulation in Morocco, "Banque d'Etat du Maroc" suspended in October 1919 the parity system between the two currencies. In March 1920, the "Hassani currency" was demonetized and replaced by notes and coins denominated in Moroccan franc whose parity with the French franc was guaranteed starting from December 1921, through an "operations account ". Extension for 20 years, of the privilege of money issuing granted to "Banque d'Etat du Maroc". As early as 1958, the Moroccan Government started negotiations with France and the "Banque d'Etat du Maroc" in order to take back the privilege of currency issuing.

Thus, on July 1st, 1959 the "Banque du Maroc" was created by the Dahir n° 1.59.233 of June 30, 1959. It became the national currency issuing institute and it replaced the former "Banque d'Etat du Maroc".

Adoption, in October 1959, of a new currency : the dirham. Promulgation of the banking Act of April 21, 1967. This law strengthened the role allotted to "Banque du Maroc" by its statutes particularly in the field of banking supervision. Issue of the centime, as a fraction of the dirham, in substitution for the franc.

In March 1987, Bank Al-Maghrib became a common denomination in all languages.

Creation in March 1987 of "Dar As-Sikkah", an industrial unit responsible for Banknotes'fabrication and coin's minting. Adoption in July 1993 of a new banking act establishing a unified regulatory framework for all credit institutions. This act has extended the sphere of consultation between monetary authorities and credit institutions, set out measures for a further protection of customers' interests and reinforced the power of the central bank in regulating and supervising the activities of credit institutions.

Amendments were brought to the Bank's statutes in October 1993, aiming at specifying more accurately its attributions, in particular, those related to monetary policy, and granting more autonomy to its administration and management bodies. Publication in the general edition of the Official Bulletin No.5397 of 21 moharrem 1427 (February, 20th 2006) of the Law No.76-03 regulating Bank Al-Maghrib status, promulgated by Dahir No. 1-05-38 of 20th Chaoual 1426 (November 23rd, 2005). This law which repeals Dahir No. 1-59-233 of 23rd Hija 1378 (June 30, 1959) concerning the creation of Bank Al-Maghrib, reinforces the autonomy of the Central Bank in terms of monetary policy and provides a legal background to its mission of monitoring and safekeeping the systems of payment. The law attributes to Bank Al-Maghrib a sui generis form of a public legal entity, controlled by the account commissioner, the government commissioner and the Court of Account. Publication in the general edition of the Official Bulletin No.5397 of 21 moharrem 1427 (February, 20th 2006) of the Law No.34-03 concerning credit establishments, assimilated institutions and their control.

Mission
The fundamental missions of Bank Al-Maghrib is to exercise the privilege of issuing banknotes and coins that are legal tender in the Kingdom, to implement monetary policy instruments in order to ensure price stability, to see to the stability of the currency and to its convertibility.

Useful links

Currency of Morocco:

Moroccan dirham

List of Central Banks:

Central Banks

Official website of Bank Al-Maghrib:

www.bkam.ma

Ministry of Economy and Finance of Morocco:

www.finances.gov.ma