The Dirham's Journey
Exchange rates, purchasing power, tipping culture, cash economy — navigating money in Morocco
The dirham (MAD) is pegged to a basket of currencies — primarily the euro (60%) and the US dollar (40%). The exchange rate fluctuates within a narrow band managed by Bank Al-Maghrib, the central bank. As of 2025, one euro buys approximately 10.5-11 dirhams. One US dollar buys approximately 9.5-10 dirhams. The rate is relatively stable — Morocco has avoided the currency crises that affect many emerging markets.
Cash is king. Morocco is overwhelmingly a cash economy outside of hotels and upscale restaurants. ATMs are widely available in cities and towns — look for the red Attijariwafa Bank and BMCE Bank machines. International cards (Visa, Mastercard) work at most ATMs. Withdraw in dirhams, not in your home currency — the dynamic currency conversion offered by ATMs carries a markup of 3-5%.
Tipping is universal and expected. In restaurants, 10% is standard if service is not included. For guides, 100-200 dirhams per day is appropriate. For hotel porters, 10-20 dirhams per bag. For parking attendants (gardiens), 5-10 dirhams. In hammams, 20-50 dirhams for the attendant. The tipping economy supplements wages that are often minimal — many service workers depend on tips as a significant portion of their income.
Pricing is dual. Tourist prices and local prices coexist, particularly in souks, taxis, and informal services. This is not a scam — it is a pricing system that reflects different purchasing power. The negotiation is the price discovery mechanism. In the souk, the first price offered is the opening position, not the final price. Counter at 40-50% and work toward a middle ground. Fixed-price shops exist — Ensemble Artisanal in every major city sells craft at government-fixed prices.
The informal economy is vast. Estimates suggest 30-40% of Morocco's GDP is informal — unregistered businesses, cash transactions, undeclared employment. For visitors, this means that many of the most authentic experiences — street food, local guides, artisan workshops — operate entirely in cash, with no receipts, no cards, and no fixed prices.
Explore the full interactive module — with exchange rate data, purchasing power comparisons, and the tipping guide detailed — at Dancing with Lions: https://www.dancingwiththelions.com/data/dirhams-journey