But what has been the impact on Sterling against the Moroccan Dirham? Due to the fact that Europe is Morocco’s largest trading partner, Moroccan authorities manage their currency very closely to the Euro meaning volatility is kept to a minimum. Therefore, GBP/EUR and GBP/MAD follow very similar trading patterns (see chart below).

So which is best to buy in? HIFX foreign currency expert, Marc Cogliatti, explains: It probably makes sense for someone in the UKGBP/EUR is more liquid and more transparent than GBP/MAD. However, because we are only talking about relatively small amounts, it doesn’t really make much difference, so it’s best just to go with whatever the developer wants.

Andy Welland, sales manager at the International Property Investment Network, agrees: The one thing you’ve got to remember is that when purchasing in Morocco, the fixed purchase price will always be in Moroccan Dirhams. Developers always give you a Euro and Sterling equivalent but of course these amounts are subject to exchange rate fluctuations and should only be taken as a guideline.

All monies have to be registered as being paid into Morocco whether you are paying the developer in Sterling or Euros but make sure you double check at what rate they are charging. If you know that you have staged payments to make and you can pay the developer directly into a Moroccan bank account, then my suggestion would be to work with a foreign exchange company and benefit from confirmed exchanged rates.

Developing countries such as Morocco continue to offer outstanding returns for worldwide investors. With the help of both investment and exchange rate professionals, buying property in Morocco should be as easy as a pleasant day on Casablanca’s beaches.

Source: ideaforinvestment.com