In a world where currency fluctuations can make or break a deal, Morocco's dirham plays by its own rules. The currency trades within a 5 percent band of a reference rate weighted 60 percent euro and 40 percent US dollar. Which means when the dollar and euro duke it out, the dirham feels it too.
Morocco's dirham dances to a dual rhythm: 60 percent euro, 40 percent dollar, trapped in a 5 percent band.
The Office des Changes runs the show on foreign exchange controls. They just published their General Instruction for Foreign Exchange Transactions 2026 and rolled out a 2025-2029 strategy. Banks got delegated authority to handle current transactions. Capital transactions? Those still need authorization.
Here's who's winning. Travel receipts hit 124.1 billion dirhams in the latest period, up 18.7 percent. Tourism money flooded in at the same pace. MRE income—that's money from Moroccans living abroad—climbed 1.6 percent. Foreign direct investment inflows surged 16.4 percent. Exports of goods and services rose 6.7 percent. Not bad for an economy projected to grow 3.2 percent in 2024 despite a drought.
The banking sector looks solid. Penetration rate sits at 78 percent. Locally owned banks control 82.3 percent of assets. Ten credit institutions trade on the Casablanca Stock Exchange. And Morocco guarantees repatriation of invested capital and profits, which matters when you're calculating returns in foreign currency. Like Egypt's approach to regulatory oversight, proper supervision ensures market integrity and protects investors from unauthorized activities.
Import payment rules got updated too. No authorization needed from the Foreign Exchange Office for imports. Companies can prepay up to 30 percent of invoice amounts. Aeronautics and space sectors get 50 percent. Letters of credit require shipment justification over 200,000 dirhams. Full prepayment's allowed for FOB goods up to that same threshold.
The IMF conducted its 2025 Article IV Consultation focusing on resilience and sustainability. The 2025 Budget commits to reducing the government debt ratio. Trade Facilitation Agreement implementation reached 93.7 percent. All while the Office des Changes released annual reports on balance of payments and foreign trade for 2024 and introduced a new OC CONNECT version with digital identification.
Bank Al-Maghrib manages Morocco's currency reserves and intervenes in foreign exchange markets to maintain the dirham's stability within its target band. Other regional institutions like BCEAO and CREPMF regulate forex and securities markets within the CFA franc zone, demonstrating different approaches to monetary integration across West Africa.
Currency valuations matter. Exchange rates determine who profits and who pays.
