Currency in Morocco: Paying, ATM; Exchanging money, etc…

Understanding the Moroccan Dirham (MAD)

The Official Currency of Morocco

Before you dive into the vibrant souks and bustling medinas, it’s essential to get acquainted with the local currency: the Moroccan Dirham. You’ll see it abbreviated as DH, or in Arabic as د.م., with the official international currency code being MAD. Morocco’s economy is unique in that the Dirham is a “closed currency.”

This status means it is technically prohibited to import or export large quantities of the currency. For the average traveler, this has one key implication: you should plan to exchange any leftover Dirhams back into your home currency before you leave Morocco. You will not be able to exchange it once you are outside the country. Airport exchange counters are available for this purpose, though it’s always best to try and spend your final notes and coins on last-minute souvenirs or snacks.

Banknotes and Coins in Circulation

The Moroccan Dirham is a straightforward currency to handle. The notes are colorful and feature portraits of King Mohammed VI and various national landmarks, making them easy to distinguish.

• Banknotes: The most common notes you will handle are 20, 50, 100, and 200 dirhams.
• Coins: You’ll frequently use coins valued at 1, 2, 5, and 10 dirhams.
• Centimes: The Dirham is subdivided into 100 centimes. While less common in tourist transactions, you may receive smaller coins of 10, 20, and 50 centimes as change, particularly in supermarkets.

Local Lingo: Dirhams vs. “Rials”

Here is a crucial piece of local knowledge that can save you both confusion and money. While the Dirham is the official currency, you may hear some vendors, particularly in older parts of the medinas or among the older generation, quote prices in “rials.” This is a remnant of a former currency, and it can be a point of confusion.

The conversion is simple but important: 1 Dirham = 20 Rials. A price quoted as “1000 rials” is actually 50 Dirhams. While most vendors dealing with tourists will use Dirhams, this discrepancy can sometimes be used to overcharge unsuspecting visitors. To avoid any misunderstanding, it is always wise to politely clarify the price. A simple question like, “Is that in Dirham?” will ensure everyone is on the same page and prevent you from accidentally paying twenty times the intended price.

Getting Cash: ATMs and Currency Exchange

While Morocco is modernizing, it remains a predominantly cash-based society. Having a good supply of Dirhams on hand is essential for daily transactions, from buying a bottle of water to haggling for a beautiful rug in the souk. Here’s how to navigate getting and exchanging your money.

Using ATMs in Morocco

Automated Teller Machines, known as ATMs or guichets automatiques, are the most convenient way to access your money in Morocco. They are generally reliable and easy to find in urban areas.

• Availability: ATMs are widespread in cities and larger towns. You’ll find them at airports, near bank branches, and in modern shopping districts. However, once you venture into rural villages or the High Atlas mountains, they become extremely scarce, so plan to withdraw enough cash beforehand.
• Major Banks: For the best reliability, look for ATMs affiliated with major national banks. These include Al-Barid Bank (often found at post offices), Attijariwafa Bank, BMCE Bank, and Banque Populaire (BCP).
• Withdrawal Limits: Be aware that most Moroccan ATMs have a transaction limit, typically between 2,000 and 4,000 DH. Your home bank will also have its own daily withdrawal limit, so the lower of the two will apply. If you need more cash, you may have to make multiple withdrawals.
• Fees and Charges: Some Moroccan banks may charge a small local fee for each withdrawal (around 20-30 DH). More importantly, check with your home bank before you travel to understand their foreign transaction fees and currency conversion charges, as these can add up quickly.
• Safety: Exercise the same caution you would at home. Prefer ATMs located inside or attached to a bank branch, shield your PIN with your hand, be aware of your surroundings, and avoid withdrawing large sums of cash late at night.

Exchanging Foreign Currency

If you prefer to bring cash to exchange, Morocco has a well-regulated system. The most widely accepted and easily exchanged currencies are Euros (EUR), US Dollars (USD), and British Pounds (GBP).

A crucial point to remember is the condition of your banknotes. Exchange bureaus can be very particular. Ensure you bring crisp, clean, and modern bills with no tears, marks, or heavy creases, as damaged notes are often rejected.

Where to Exchange Your Money

You have several official options for exchanging currency. The exchange rate is set daily by the central bank, so you will find only minor variations between different official providers.

Official Exchange Bureaus (Bureau de Change)

These are your best option. You’ll find them in airports, tourist areas, and medina entrances. They often offer the most competitive rates and are quick and efficient. While many advertise “no commission,” it’s wise to always ask for the final amount you will receive and check it against your receipt before leaving the counter.

At the Airport

Exchanging money at the airport upon arrival is undeniably convenient. However, this convenience comes at a cost, as airport exchange rates are consistently less favorable than those you’ll find in the city. A practical approach is to exchange only a small amount—perhaps €50, $50, or £50—to cover your taxi fare and any immediate needs like a coffee or snack.

Banks

Banks are a secure and official place to exchange currency. The rates are fair, but the process can be more time-consuming, often involving longer queues and more paperwork. Their opening hours are also less convenient for travelers compared to a dedicated bureau de change.

What to Avoid

To protect your money and stay on the right side of the law, steer clear of two options:

• Hotels: While most large hotels offer currency exchange, their rates are typically very poor. It is a service of last resort.
• Street Exchangers: You may be approached by individuals on the street offering to exchange money. This is the “black market,” and it is both illegal and extremely risky. You expose yourself to scams, counterfeit currency, and theft. Always use an official, licensed provider.

How to Pay: Cash vs. Card

Cash is King

While digital payments are becoming more common globally, Morocco remains a predominantly cash-based economy. For a smooth and authentic travel experience, carrying a sufficient amount of Moroccan Dirhams is not just a recommendation—it’s essential. Cash allows you to engage with the local economy on its own terms, from the bustling medinas to serene rural villages. Understanding the geography of Morocco can help you anticipate where cash might be more or less readily accepted.

Having cash on hand is particularly crucial for the following situations:

• Shopping in souks and medinas: The vast majority of vendors in these traditional markets operate exclusively with cash. It’s also the only way to pay if you plan on bargaining for goods.
• Paying for petit taxis: These small, local taxis rarely have card machines. Fares are metered or agreed upon, and payment is always in cash.
• Small cafes and local restaurants: Your morning coffee or a delicious tagine at a family-run eatery will almost certainly require dirhams.
• Street food vendors: Don’t miss out on incredible local snacks and meals; these vendors only accept cash.
• Stays in smaller guesthouses or riads: While many bookable online, smaller, independent riads often prefer or require cash payment for the final bill and any extras.
• Purchases in rural areas: Once you leave the major cities, the availability of card terminals drops significantly.

Using Credit and Debit Cards

Credit and debit cards certainly have their place in Morocco, offering convenience and security for larger purchases. Relying solely on a card, however, would limit your experiences. They are best used as a supplement to cash, not a replacement.

You can confidently use your card in these establishments:

• Large international hotels: Major hotel chains and high-end resorts will accept credit cards for payment and incidentals.
• Upscale restaurants and riads: More formal dining establishments and luxury riads, especially those catering to international tourists, are typically equipped for card payments.
• Modern supermarkets: Chains like Carrefour or Marjane operate just like supermarkets elsewhere and accept all major cards.
• Some larger, fixed-price artisan shops: Government-regulated artisan co-ops (Ensemble Artisanal) or high-end boutiques in modern parts of cities often have card facilities.

In terms of acceptance, Visa and Mastercard are the most widely recognized. American Express is accepted in far fewer places, primarily in top-tier international hotels and restaurants.

A Note on Dynamic Currency Conversion (DCC)

When paying by card, you may be presented with a choice on the payment terminal: pay in your home currency (e.g., USD, EUR, GBP) or pay in the local currency (MAD). This is called Dynamic Currency Conversion (DCC). It may seem convenient to see the price in a familiar currency, but this service comes with a poor exchange rate set by the payment processor, not your bank.

CRITICAL ADVICE: Always choose to pay in the local currency, Moroccan Dirhams (MAD). By doing so, you ensure that the currency conversion is handled by your own bank, which almost always offers a much more favorable rate.

Money Etiquette and Practical Tips

The Art of Bargaining

In Morocco, particularly within the bustling souks and medinas, bargaining is not just a way to get a better price—it’s an integral part of the social and commercial fabric. Far from being confrontational, it’s a friendly and expected interaction. Approaching it with a smile and a good-natured attitude will not only make the experience more enjoyable but also often lead to a better outcome. Remember, the initial price is almost always just a starting point for the conversation.

• Be polite and friendly: A warm smile and a calm demeanor are your best tools. Haggling is a respectful negotiation, not an argument.
• Have a price in mind: Before you begin, decide what the item is worth to you. This gives you a clear goal and an endpoint for the negotiation.
• Make a reasonable first offer: A common strategy is to counter the seller’s initial price with an offer of around 50%. You will likely meet somewhere in the middle.
• Show genuine interest: Only begin to bargain if you are seriously considering buying the item. Engaging in a long negotiation and then walking away without a good reason can be considered impolite.
• Know when to walk away: If you and the vendor cannot agree on a price you’re comfortable with, it is perfectly acceptable to politely thank them for their time and walk away. Sometimes, this gesture will prompt a final, better offer.

Tipping in Morocco

While not strictly mandatory, tipping (known as a baksheesh) is a customary way to show appreciation for good service in Morocco. Wages can be low, so these gestures are always well-received and can make a significant difference. It is highly recommended to keep a supply of small coins and banknotes (5, 10, and 20 dirham bills) handy, as asking a vendor or waiter to break a large bill for a small tip can be awkward.

Here are some general guidelines for common situations:

• Cafes: For a coffee or a soft drink, rounding up the bill or leaving 2-5 DH on the table is standard.
• Casual Restaurants: For a simple meal, rounding up the total is fine. For attentive service, a tip of around 10% of the bill is appropriate.
• Hotel Porters: A tip of 10-20 DH per piece of luggage is a nice gesture for their help.
• Housekeeping Staff: Leaving around 20 DH per day in your room for the staff is a common practice.
• Petit Taxis: Simply round up the metered fare to the nearest 5 or 10 DH.
• Tour Guides: For a private guide, 100-200 DH for a full day or 50-100 DH for a half-day is a standard amount, depending on the quality and length of the tour.

Budgeting and Daily Costs

Morocco can accommodate a wide range of budgets, from the frugal backpacker to the luxury seeker. Your daily expenses will depend entirely on your choices for accommodation, dining, and activities. Below are some approximate daily budget estimates to help you plan your trip. Note that these are per person and do not include major one-off costs like international flights or extensive shopping sprees.

Budget Traveler: 400-500 MAD ($40-50 USD) per day

A budget-conscious traveler can enjoy Morocco comfortably by staying in hostels, eating at local food stalls, and using public transport.

• Accommodation: Dorm bed in a hostel (100-200 DH)
• Food: Street food, tagines in small local cafes (150-200 DH)
• Transport & Activities: Walking, petit taxis, minimal entry fees (50-100 DH)

Mid-Range Traveler: 1,000-1,800 MAD ($100-180 USD) per day

This budget allows for more comfort, including private rooms in traditional riads, meals in a mix of local and more established restaurants, and a few guided tours.

• Accommodation: Private room in a nice riad or a mid-range hotel (600-1,200 DH)
• Food: Meals in mid-range restaurants and cafes (300-500 DH)
• Transport & Activities: More frequent taxi use, museum entries, a hammam experience (200-400 DH)

Luxury Traveler: 3,000+ MAD ($300+ USD) per day

For those seeking a high-end experience, Morocco offers stunning luxury hotels, fine dining, and private, bespoke services.

• Accommodation: Suite in a luxury hotel or a high-end riad (2,000+ DH)
• Food: Fine dining restaurants, hotel bars, and upscale cafes (800+ DH)
• Transport & Activities: Private driver, private guided tours, high-end shopping, spa treatments (1,000+ DH)