Moroccan Dirham (MAD)

Basic Concepts of the Moroccan Dirham

The Moroccan Dirham is the legal tender of the Kingdom of Morocco, issued and managed by the Central Bank of Morocco. Its ISO 4217 currency code is MAD and its symbol is "د. م." . The dirham is pegged to a basket of currencies using a fixed exchange rate system to maintain economic stability.

Countries of use

The Moroccan Dirham is mainly circulated in Morocco itself and in Western Sahara. Within Morocco, the dirham is the only legal tender and is widely used for daily transactions, tourism and commerce. Neighboring countries such as Algeria and Mauritania may accept the dirham in some of their border areas, but it is not the official currency in circulation.

Units and denominations

The Moroccan dirham is divided into the primary unit, the dirham, and the secondary unit, the cent, with one dirham equaling 100 cents. Banknote denominations include 20, 50, 100, and 200 dirhams, while coin denominations include 1, 2, 5, and 10 dirhams and 1, 5, 10, and 20 cents. The design of the banknotes incorporates elements of Morocco's historical figures, architecture and cultural heritage.

Historical background

The Moroccan Dirham can be traced back to the silver Dirhams of the 7th century during the Arab Empire. The modern dirham was introduced in 1882 and was initially pegged to the French franc; after Morocco's independence in 1956, the dirham became the sovereign currency, and a monetary reform was carried out in 1960 to establish the current system. Its exchange rate policy has been adjusted several times in response to changes in the global economy and regional trade.