Morocco’s Dirham Drops 6.5% Against Dollar Since August
MOROCCO · CURRENCY
Key Facts
- —The country Morocco is a North African kingdom facing Spain across the Strait of Gibraltar, and the only African country with a US free trade agreement.
- —What happened Bank Al-Maghrib, the central bank, published reference rates on Tuesday 6 October of 9.9694 dirhams per US dollar and 11.2167 per euro.
- —The numbers Since Friday 31 July, Morocco’s dirham has lost 6.5% against the dollar and 4.3% against the euro, on the central bank’s figures.
- —Why it is falling The dollar has strengthened worldwide, and imports rose 15.8% in eight months against 8.7% for exports, lifting demand for foreign currency.
- —The US angle A US dollar now buys about 6.9% more dirhams than in late July, while US goods cost Moroccan buyers more.
- —Still open How long the slide lasts, and whether it pushes up prices in an economy where inflation averaged 0.3% from January to August.
Morocco’s dirham has lost 6.5% of its value against the US dollar since the end of July, according to Bank Al-Maghrib, the central bank. Its reference rate on Tuesday 6 October stood at 9.9694 dirhams per US dollar, close to the symbolic mark of 10.
For Americans, the slide makes Moroccan holidays cheaper, while US exporters selling into Morocco see their goods grow dearer. The euro climbed too, to 11.2167 dirhams per euro, up 4.5% over the same period.
How Far the Dirham Has Fallen
The central bank’s reference rate, the official daily average it publishes for each currency, tells the story. On Friday 31 July, it stood at 9.3241 dirhams per US dollar and 10.7377 dirhams per euro.
Morocco’s dirham weakened faster from mid-September. On Tuesday 15 September the rate was 9.4741 dirhams per US dollar, so over two thirds of the rise came afterwards.
On Monday 5 October, the reference rate reached 9.9779 dirhams per US dollar and 11.1799 per euro. On Tuesday the dollar eased slightly while the euro rose again.
Le360, a French-language Moroccan news site, examined the slide in an analysis on Tuesday evening. It called the depreciation unusual in both size and length, and asked whether Moroccans should worry.
How Morocco’s Currency System Works
Morocco’s dirham does not float freely. Bank Al-Maghrib sets a central rate based on a basket that is 60% euro and 40% US dollar, according to the bank.
The market rate may move up to 5% either side of that central rate. Morocco widened the band from 0.3% to 2.5% in January 2018, and to 5% on 9 March 2020.
On Tuesday morning, the central bank’s published band for the dollar ran from 9.2310 to 10.2026 dirhams per US dollar. Tuesday’s reference rate therefore sat about 2% short of the weakest level the band allows.
Le360 notes that a stronger dollar on world markets passes partly and mechanically into the dollar-dirham rate. The dirham can still move differently against the two currencies, depending on euro-dollar swings and on demand for foreign currency inside Morocco.
Global interest rates are part of the picture. In its 22 September statement, Bank Al-Maghrib noted that the US Federal Reserve raised rates at its 15-16 September meeting, its first increase since 2023.
The European Central Bank, which sets interest rates for the euro area, raised them on 10 September, its second increase this year, the statement added.
Energy Imports Drain Foreign Currency
A wider trade gap is one likely source of pressure on Morocco’s dirham, Le360 notes. From January to August, imports rose 15.8% to 617.5 billion dirhams (about US$61.9 billion at Tuesday’s reference rate).
Exports grew 8.7% to 334.9 billion dirhams (about US$33.6 billion), says the Office des Changes, the state agency that compiles trade data. The trade deficit widened 25.4% to 282.6 billion dirhams (about US$28.3 billion).
The energy bill alone rose 32.6%, the agency said. Exports of phosphates and derivatives, one of Morocco’s biggest earners, fell 6.0% to 61.1 billion dirhams (about US$6.1 billion).
Abdelghani Youmni, a Moroccan economist quoted by Le360, links the energy bill to the war between Iran and the United States. He also cites disrupted shipping through the Strait of Hormuz.
Bank Al-Maghrib expects the current account deficit, the broadest gauge of trade and income flows, to reach 4.6% of output this year. It was 2.4% in 2025.
Reserves Give Morocco’s Dirham a Cushion
Morocco’s dirham still has a large cushion behind it. Official reserves stood at 506.4 billion dirhams (about US$50.8 billion) on 25 September, up 21.4% in a year.
In August they covered 5 months and 24 days of imports of goods and services, Bank Al-Maghrib’s weekly indicators show. Tourism receipts rose 9.7% to 97.9 billion dirhams (about US$9.8 billion) by the end of August, the Office des Changes reported.
Money sent home by Moroccans abroad rose 9.0% to 89.2 billion dirhams (about US$8.9 billion). “The fall of the dirham does not describe a currency crisis,” Youmni told Le360.
The central bank had already expected some weakening. On 22 September it forecast a 4.1% fall this year in the real effective exchange rate, which weighs the dirham against trading partners after inflation.
It said the dirham remains broadly aligned with economic fundamentals, and held its key interest rate at 2.25%. Inflation averaged 0.3% over the first eight months.
Youmni warns that a lasting slide could still feed imported inflation. It would also raise the dirham cost of Morocco’s foreign-currency debt.
What It Means for US Readers
For American travellers, Morocco’s dirham is now cheaper. A dollar buys about 6.9% more than in late July, roughly 9.97 instead of 9.32 dirhams per US dollar, before exchange-office margins.
For US exporters, the news is less welcome. The US-Morocco free trade agreement took effect on 1 January 2006, says the Office of the US Trade Representative.
US goods exports to Morocco reached US$4.75 billion from January to August 2026, against imports of US$1.50 billion, US Census Bureau data show. A weaker dirham makes those dollar-priced goods more expensive for Moroccan buyers.
American companies that earn dirhams in Morocco will see those profits translate into fewer dollars. Moroccan exporters, by contrast, gain, because their dollar and euro sales convert into more dirhams.
Investors in the Casablanca Stock Exchange face the same split, Youmni says, with importers and firms tied to public contracts most exposed. The dirham’s daily moves also feature in the Casablanca market report for 1 October.
What Is Not Known
Nobody knows how long the slide in Morocco’s dirham will last. Youmni says a long energy shock could lock in a cycle of higher imports, a wider deficit, a weaker dirham and rising prices.
Bank Al-Maghrib’s most recent board statement came on 22 September, before the sharpest part of the slide. The dollar’s reference rate has climbed 4.3% since that day.
It is also unclear how much of the slide reflects global dollar strength rather than local demand for foreign currency. Le360 cites a statistical link between the trade deficit and the exchange rate, while noting that correlation alone does not prove cause.
More: Morocco news in English, every day from The Rio Times.
Frequently Asked Questions
Why is Morocco’s dirham falling?
The US dollar has strengthened worldwide, and Morocco’s imports, including a 32.6% jump in the energy bill, are growing much faster than its exports. That raises demand for dollars and euros inside the country.
Does the dirham float freely?
No. Morocco’s dirham trades within 5% either side of a central rate, which Bank Al-Maghrib bases on a basket of 60% euro and 40% dollar.
Is Morocco facing a currency crisis?
The economist Abdelghani Youmni, quoted by Le360, says no. Reserves of about US$50.8 billion cover almost six months of imports, and tourism income keeps rising.
Is Morocco cheaper for American tourists now?
Yes, modestly. A US dollar buys about 6.9% more dirhams than at the end of July, although exchange offices apply their own rates and fees.
What does the slide mean for US companies?
US goods become more expensive for Moroccan buyers, and dirham profits are worth fewer dollars. Firms that export from Morocco and sell in dollars or euros gain, because their revenue converts into more dirhams.
Sources: Bank Al-Maghrib, reference exchange rates (6 October 2026), 6 October 2026; Bank Al-Maghrib, fluctuation band of the dirham, 6 October 2026; Le360, “Le dirham dégringole face au dollar et à l’euro: faut-il s’inquiéter?”, 6 October 2026; Bank Al-Maghrib, weekly indicators, week of 24 to 30 September 2026, accessed 7 October 2026; Bank Al-Maghrib, board meeting statement, 22 September 2026; Bank Al-Maghrib, exchange-rate regime reform, accessed 7 October 2026; Office des Changes, foreign trade indicators to end-August 2026, 30 September 2026; Office of the US Trade Representative, Morocco FTA, accessed 7 October 2026; US Census Bureau, trade in goods with Morocco, accessed 7 October 2026.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.