The IMF has approved a two-year $3.47bn Precautionary and Liquidity Line (PLL) for Morocco, to support it with “useful insurance against external shocks as the authorities pursue their reform agenda aimed at further strengthening the economy’s resilience and fostering higher and more inclusive economic growth.”

The Moroccan authorities have stated that they plan to treat the new PLL as precautionary, as they have done under the previous two arrangements. They do not intend...