Moroccan Dirham - MAD

Overview

The Dirham is the currency of Morocco. The plural form of Dirham is Darahim, but in English and French Dirham is used for the plural. The Dirham is released by The Central Bank of Morocco, the Bank Al-Maghrib. The Dirham is also the de facto currency in Western Sahara. Although the Dirham is considered a wholly convertible currency, its export is prohibited by law, but is uncontrolled.

Economy

• Morocco’s main economic problems are foreign trade, achieving sustainable economic growth, restraining government spending, and reducing constraints on private activities.
• In the year 2002, significant shortage lowered activity in the agricultural sector, which led to a dormant economy.
• Morocco’s economy was boosted after successful huge transactions from the sale of mobile cell phone licenses and from privatizing the state-owned telecommunication and tobacco companies.
• The state’s long-term challenges include preparing the economy for freer trading with other countries, as well as improving education and attracting foreign investors in order to maintain living standards and job opportunities for Morocco’s youth.

History

• The Moroccan Dirham originated in the Byzantine Empire’s drachm and was used in Arabia and the Levant during the pre-Islamic era. The word Dirham came from the Roman word denarius.
• Before the introduction of modern coinage in 1882, Morocco issued copper coins denominated in falus, silver coins denominated in dirham, and gold coins denominated in benduqi.
• In 1882, the Dirham became a part of the Moroccan Rial, with 50 Mazunas = 10 Dirham = 1 Rial.
• When Morocco became a French state in 1921, it switched to the Moroccan Franc currency.
• The Dirham was re-introduced in 1960. It replaced the Moroccan Franc as the major unit of currency but, until 1974, the Franc continued to circulate, with 1 Dirham = 100 Francs.
• In 1977, a new design of banknotes was issued and the National bank took over the printing of banknotes.

General Information