The currency of Morocco is the Moroccan dirham (ISO code MAD), written locally as د.م. and subdivided into 100 centimes. As of 2026, one US dollar buys roughly 10 dirhams, and one euro roughly 11. The dirham is issued and managed by Bank Al-Maghrib, the country's central bank, and it is the only legal tender across all of Morocco, from the souks of Marrakech to the fishing ports of the Atlantic coast.
What the Dirham Looks Like
Moroccan money comes in a tidy set of banknotes and coins that you will quickly learn to recognise. Banknotes are issued in denominations of 20, 50, 100, and 200 dirhams, each a different colour and size to make them easy to tell apart:
- 20 MAD — blue, the smallest note, handy for taxis and small purchases.
- 50 MAD — green/purple, a common everyday note.
- 100 MAD — brown, widely used for restaurants and shops.
- 200 MAD — the largest note, useful for hotels but awkward for small vendors.
Every banknote carries a portrait of King Mohammed VI, reflecting the monarchy's central place in Moroccan life, alongside images of national landmarks, architecture, and modern development projects. Coins circulate in 1, 2, 5, and 10 dirhams, plus smaller centime pieces. Because 200-dirham notes can be hard to break, travellers often ask banks or ATMs for a mix of smaller denominations.
A Currency With Ancient Roots
The word "dirham" is far older than the modern note. It descends from the ancient Greek drachma, a silver coin whose name spread across the Mediterranean and was absorbed into Arabic during the Islamic Golden Age, when dirham coins circulated throughout the medieval Muslim world. Several countries in the region still use variations of the name today.
Modern Morocco's monetary story runs through its colonial period. During the French and Spanish protectorates (1912–1956) the Moroccan franc was the official money. After independence the country moved to reassert its own identity, and the dirham was reintroduced in 1960, replacing the franc and reviving a name with deep historical resonance.
How the Dirham Is Managed
The Moroccan dirham is a partially convertible, managed currency. Unlike freely floating money such as the dollar or euro, it cannot be traded without limits on global markets, and its value is anchored to a currency basket weighted roughly 60% euro and 40% US dollar. This reflects Morocco's trade ties, which lean heavily toward Europe.
The peg has long given Morocco a degree of price stability, shielding it from the wild swings that affect some emerging-market currencies. Beginning in 2018, Bank Al-Maghrib started a cautious liberalisation, widening the band within which the dirham is allowed to move against the basket. The aim is to gradually let market forces play a bigger role while avoiding sudden shocks. The transition has been deliberately slow, and the central bank still keeps the currency under careful management.
Using Money in Morocco: A Traveller's Guide
Morocco remains a strongly cash-based economy, especially once you step away from large hotels and modern stores. In the medinas, souks, rural villages, and for small services such as taxis or tipping, cash is essential and often the only option accepted.
- Getting dirhams: ATMs are widespread in cities and towns and are usually the easiest way to withdraw local cash. Banks and official exchange bureaus readily convert euros and US dollars.
- Cards: Credit and debit cards work at upscale hotels, larger restaurants, and modern shops, but do not rely on them in the old town.
- Bargaining: Haggling is expected in the souks. A common rule of thumb is to start your counter-offer at around 40% of the first asking price and negotiate from there.
- Export rule: The dirham is a "closed" currency, and it is technically illegal to take it out of the country, so spend or convert leftover notes before you leave.
One charming quirk to know: in many markets, especially with older vendors, prices are sometimes quoted in rials (or reals), an informal unit where 1 dirham equals 20 rials. Hearing a price in the hundreds when you expected a small number is usually just this old counting habit, not a wild overcharge. For more on visiting the country, see our morocco country guide.
Frequently Asked Questions
What is the currency of Morocco called?
It is the Moroccan dirham, abbreviated MAD and written as د.م. in Arabic. Each dirham is divided into 100 centimes, and the currency is issued by the central bank, Bank Al-Maghrib.
Can I use euros or US dollars in Morocco?
Not for everyday purchases. While a few tourist-oriented businesses may accept euros, the dirham is the only legal tender. You should exchange foreign cash at banks or licensed bureaus, or withdraw dirhams from an ATM.
How many dirhams are in a dollar or euro?
As of 2026, one US dollar is worth roughly 10 dirhams and one euro about 11 dirhams. Because the dirham is pegged to a euro-dollar basket, these rates stay relatively stable compared with free-floating currencies.
Can I take Moroccan dirhams home with me?
It is technically illegal to export the dirham, as it is a closed currency. Convert any leftover notes back into euros or dollars before departing, which you can do at the airport or an exchange bureau.