RABAT, March 3 (Xinhua) -- Morocco's foreign exchange reserves stood at 25.4 billion U.S. dollars at the end of February, dropping by 5.9 percent year on year, Morocco's Central Bank said Saturday.

The foreign exchange reserves had hit 26.2 billion dollars before the entry into force of the gradual floating of the Moroccan dirham last January.

On Jan. 15, the Moroccan government started the gradual floating of its currency, raising the official band of dirham's fluctuation to 2.5 percent above or below the official rate from the previous 0.3 percent.

The latest statistics by the Moroccan Central Bank show that Morocco's dirham barely moved against major currencies since the move.

The dirham is pegged to a two-currency basket weighted 60 percent to the euro and 40 percent to the U.S. dollar.

The Moroccan government said widening the dirham trading band is part of a broader plan to float the currency and make the economy more resilient against external shocks and help boost growth.