Money sent home by Moroccans living abroad has dropped noticeably in the first half of 2025.
According to recent data from the Exchange Office, the total amount of remittances reached MAD 55.86 billion by the end of June, down 2.6% compared to the same period last year, when it was MAD 57.35 billion. That’s almost MAD 1.5 billion less flowing into Morocco.
This comes after several years of steady growth from 2021 through 2024. But experts told zaia newsAR that this isn’t just a short-term issue.
They believe the drop reflects deeper changes in how the Moroccan diaspora relates to institutions back home, as well as growing concerns about the risks involved in sending money internationally, especially given the stricter global rules on financial transparency and oversight.
The recent drop in money sent home by Moroccans living abroad can’t be fully explained by the usual reasons, economic analyst Rachid Sari, head of the African Center for Strategic and Digital Studies, told zaia newsAR.
Sari argued that while factors like Europe’s economic slowdown or rising travel costs in Morocco are often cited, they don’t tell the whole story, especially when remittances continued to break records even during the height of the COVID-19 crisis.
He emphasized that one of the main reasons is the set of financial information-sharing agreements Morocco has signed with several European countries.
These deals, he explained, have made some members of the Moroccan diaspora hesitant to send money directly through banks, fearing tax scrutiny in their countries of residence.
Another reason is a slowdown in property investment by Moroccans abroad.
Sari noted that some have stopped buying real estate in Morocco, while others are selling off their properties, largely due to concerns about tax implications overseas.
He also pointed out that many in the Moroccan diaspora were reluctant to travel in June and July this year. While some blame higher travel costs, Sari believes it has more to do with social and administrative factors. Many in the diaspora receive monthly financial aid from their host countries and prefer to travel in August, when doing so won’t affect these benefits.
Sari stressed that Morocco’s institutions need to do more to reassure its diaspora. That means clear communication to guarantee that sending money home won’t trigger tax or legal problems.
Without that, he warned, the decline in remittances could deepen, weakening trust and having serious long-term consequences for the economy.
The priority now, he concluded, “is a clear official message and genuine institutional efforts to rebuild the confidence of Moroccans abroad and encourage them to keep supporting the national economy.”
Abderrazak El Hiri, director of the Laboratory for Coordination of Studies and Research in Economic Analysis and Forecasting at Sidi Mohamed Ben Abdellah University in Fez, said remittances are falling mainly due to higher living costs as well as inflation affecting expatriates’ savings, and the lack of attractive investment opportunities for them in Morocco.
He noted that remittances are drawn from expatriates’ savings and are affected by inflationary dynamics. Still, he said there’s a chance they could rebound this summer and match last year’s levels by year’s end.c
El Hiri pointed out that remittances have doubled compared to pre‑COVID levels, funding both consumption and investment.
But he stressed the need to review public policies to better support diaspora investments, especially beyond real estate, which faces bureaucratic and tax problems, and to strengthen legal protections to boost confidence and security for investors.
He concludes that remittances remain a vital source of foreign currency for Morocco.
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