MAD - Moroccan Dirham

Overview of the Moroccan Dirham (MAD)

The Moroccan Dirham, also known as Ma-rốc Điaham, Moroccan Dirham, darāhim (plural), MAD, or "درهم مغربي" (Darahim Maghribi) in Arabic.

The symbol of the Moroccan Dirham is . د and the currency code for this currency according to standard 4217 is MAD. The issuance and management of the Moroccan Dirham are the responsibility of the Central Bank of Morocco (Bank Al-Maghrib), which is also the central bank of this country. The Central Bank of Morocco not only issues coins and banknotes but also manages the entire monetary policy and supervises the banking system to ensure the stability of the dirham in the Moroccan economy.

This central bank carries out all activities related to currency issuance, including the design, printing, and circulation of banknotes and coins.

One Dirham is divided into 100 satim. The Dirham was once divided into smaller units called rial, with 1 Dirham equivalent to 20 rial.

The history of the formation of the Moroccan Dirham (MAD)

The term Dirham originates from the ancient Greek currency drachma, which was widely used in the ancient world. In the history of Morocco, the dirham held an important position, especially during the Idrisid era (from the 8th to the 10th century), when it was minted from silver and served as the primary medium of exchange in trade contracts.

The monetary system in Morocco before 1882

Before adopting the modern monetary system, Morocco used a coin system such as "falus" made of copper for transactions, "dirham" made of silver for larger transactions, and "benduqi" made of gold. This system reflects the diversity and richness of the Moroccan economy at that time.

The monetary reform period of 1882

Morocco began establishing a modern monetary system in 1882, in which the dirham became the smaller unit of the Moroccan rial with an exchange rate of 500 Mazunas = 10 dirhams = 1 rial. This reform will help standardize and simplify economic transactions.

Introduction of the official currency system

Morocco began establishing a modern monetary system in 1882, in which the dirham became the smaller unit of the Moroccan rial with an exchange rate of 500 Mazunas = 10 dirhams = 1 rial. This reform will help standardize and simplify economic transactions.

• In 1912, when France established a protectorate over Morocco, the franc became the main currency, replacing the dirham. 

• In 1960, the Moroccan Dirham was introduced and used to replace the Moroccan Franc after Morocco gained independence from France in 1956, marking an important milestone in asserting the national economy and financial independence. 

• The franc continued to circulate alongside the dirham until 1974, when the centime officially replaced the franc.

In 2003, a new series of currency was issued

On November 24, 2023, the Central Bank of Morocco, Bank Al-Maghrib, officially announced the release of a new series of coins and banknotes, including a new 100 dirham note. The issuance of this currency aims to modernize the national monetary system while also reflecting the stability of the Moroccan economy. 

Moroccan Dirham (MAD) Denominations

Currently, the Moroccan Dirham is issued in the form of coins and banknotes with the following denominations:

• Coins: 5, 10, 20, 50 santimat, 1, 2, 5, 10 Dirham

• Banknotes: 20, 50, 100, and 200 Dirham

Moroccan Dirham (MAD) exchange rate

The Central Bank of Morocco is implementing a managed floating exchange rate policy for the MAD. This policy is based on a currency basket of the countries that trade and invest with Morocco. The main objective is to maintain exchange rate stability and control inflation, while also promoting economic growth.

History of Moroccan Dirham (MAD) exchange rate

• In 1882, the dirham officially became part of the new monetary system, subdivided from the Moroccan rial with an exchange rate of 500 Mazunas = 10 dirhams = 1 rial.

• 1960: Morocco regained independence from France, and the Dirham was reintroduced on October 16, replacing the franc as the main currency. During this period, the franc continued to be the main currency. During this period, the franc continued to circulate alongside the dirham until 1974, with an exchange rate of 1 dirham = 100 francs.

• 1980 – 2000: Morocco adopted a regulated floating exchange rate mechanism. During this period, the central bank intervened to adjust the exchange rate in order to stabilize the economy.

• Period 2000 – present: Morocco has continued to implement a managed floating exchange rate policy, while the central bank adjusts the exchange rate as necessary.

 

Moroccan Dirham (MAD) exchange rate

The value of the Moroccan Dirham (MAD) is influenced by many economic and financial factors, including:

• Global economic situation: Factors such as economic recession in Morocco's main trading partners can reduce export demand, affecting the value of the MAD. The global economy and trade relations play a crucial role in determining the demand and supply for this currency.

• Monetary policy of the Moroccan government: The Moroccan government can implement intervention measures to stabilize the value of the MAD, including the application of fiscal policy and direct measures in the foreign exchange market to adjust the exchange rate.

• World gold price (XAU/USD): The volatility of gold prices can affect Morocco's monetary policy. If gold prices rise too high and lead to a significant increase in the MAD, the Central Bank of Morocco may intervene by selling MAD to maintain an appropriate exchange rate, helping to preserve the competitive advantage for exporters.

• Bank interest rates in Morocco: The interest rates of the Central Bank of Morocco play an important role in adjusting the value of the MAD. When interest rates rise, the MAD can become more attractive to investors due to higher yields, causing the value of the currency to increase. Conversely, low interest rates can cause the MAD to depreciate as investors shift towards higher-yielding channels.

• Bitcoin/USD price: Although there is no official research on the relationship between Bitcoin price and the MAD, the increasing popularity of Bitcoin and the large influx of capital into the cryptocurrency market could indirectly affect the exchange rate of the Moroccan Dirham in the future.

The Moroccan Dirham is a currency of significant value to the Moroccan economy and the region. To get the most accurate exchange rate for the Moroccan Dirham, follow Gocuco for the most precise conversion rates!