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Moroccan Dirham Slips as Euro Breaches 11 DH Threshold Amid Dollar Strength
The Moroccan dirham weakened against both the euro and the US dollar during the week of September 24–30, 2026, according to Bank Al-Maghrib's weekly indicators. The euro crossed the symbolic 11 DH mark, reaching 11.083 DH by October 2, while the dollar climbed to 9.855 DH. The depreciation reflects broader dollar strength internationally. Morocco's exchange rate regime, pegged to a 60/40 euro-dollar basket with a ±5% fluctuation band, remains intact, and the central bank conducted no foreign exchange auctions during the period. The weaker dirham boosts the local-currency value of eurozone remittances but raises the cost of euro- and dollar-denominated imports.
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Dirham Extends Losses as Euro Pierces 11 DH Barrier
The Moroccan dirham continued its downward trajectory against major currencies in late September 2026, with the euro breaching the psychologically important 11 DH level for the first time in recent memory. According to weekly data released by Bank Al-Maghrib (BAM), the national currency depreciated 0.5% versus the euro and 0.9% versus the US dollar during the week of September 24–30.
Key Exchange Rate Movements
- Euro: Reference rate moved from 10.945 to 10.998 DH (weekly average); spot rate hit 11.083 DH on October 2.
- US Dollar: Reference rate rose from 9.591 to 9.682 DH; spot rate reached 9.855 DH on October 2.
External Drivers and Regime Context
The dirham's slide mirrors a broader rally in the US dollar on international markets. Morocco operates a managed float regime where the dirham's value is anchored to a basket weighted 60% to the euro and 40% to the dollar, with a permitted fluctuation band of ±5% around a central rate. The current moves remain well within this band.
Central Bank Stance
Bank Al-Maghrib did not conduct any foreign exchange auctions during the reference week, signaling comfort with the current level of volatility and no immediate need to defend the currency.
Economic Implications
The depreciation presents a double-edged sword for the Moroccan economy:
- Positive: Remittances from the Moroccan diaspora in the eurozone — a critical source of foreign currency — gain value when converted into dirhams.
- Negative: Import costs for energy, raw materials, and capital goods priced in euros or dollars rise, adding to inflationary pressures.
Market participants will closely monitor BAM's upcoming weekly indicators to gauge whether the trend persists or stabilizes.