This article analyzes the transmission mechanism of exchange rate fluctuations and oil to consumer prices in Morocco, known as the «pass-through». This reflection comes in the context of the continued flexibility of the exchange rate regime initiated in January 2018, and following the decompensation of petroleum product prices carried out in January 2015, as part of the gradual liberalization of the prices of subsidized products. Thus, this paper consists in evaluating this Pass-through in Morocco using a cointegration approach through an ARDL model. The results obtained show the existence of a long-term relationship between exchange rate or oil fluctuation and the consumer price, as well as the existence of an error correction mechanism that adjusts prices during short-term instability.

The exchange rate has always attracted the attention of researchers in an ever-changing economy, especially for its effects on macroeconomic aggregates and on the attractiveness of investments. However, there was no consensus on its impact on foreign direct investment (FDI). In this respect, this Communication aims to understand the impact of exchange rate volatility on FDI in Morocco, using a cointegration approach using an ARDL model to estimate short- and long-term effects. The data used are quarterly, covering the period from the first quarter of 2007 to the fourth quarter of 2021, representing 60 observations. The period chosen represents a period of economic and institutional reforms aimed at improving the business climate in Morocco, it is also marked by changes in exchange and tax policies, which is likely to influence the choice of foreign investors. The empirical results show that in the short and long term, the real effective exchange rate has a negative and highly significant impact. Inflation has a positive effect, which means that higher prices can lead to greater marginal profitability of capital and thus stimulate investment. In addition, it seems that the size of the potential market, the quality of institutions and infrastructures are key factors in attracting foreign capital to Morocco.