Casablanca – The Moroccan dirham depreciated against both the euro and the US dollar between September and October 2026, reflecting movements in international currency markets and the continued influence of the euro-dollar exchange rate on Morocco’s monetary system. According to Bank Al-Maghrib, the national currency lost 1.2% of its value against the euro and 3.7% against the US dollar during the period, while the euro itself declined by 2.6% against the American currency.

The figures, published in the central bank’s latest monthly review of economic, monetary and financial conditions, provide an indication of the exchange rate pressures affecting the Moroccan economy. They also come against a backdrop of increased foreign exchange transactions on the domestic market, with interbank currency trading and operations between banks and their customers recording significant growth.

The depreciation against the dollar was more pronounced than the decline against the euro, reflecting the different movements of the two currencies on international markets. Since the dirham is linked to a basket composed of the euro and the US dollar, changes in the relative value of these currencies influence its exchange rate.

Morocco’s exchange rate regime allows the dirham to fluctuate within a band around a central reference rate determined using the currency basket. The euro represents 60% of this basket, while the US dollar accounts for the remaining 40%. Consequently, movements in both currencies can affect the dirham’s external value, although their respective weightings differ.

The latest figures therefore reflect both the weakening of the euro against the dollar and the broader movement of the Moroccan currency against its principal international counterparts.

Foreign exchange transactions expand on the interbank market

Alongside the depreciation of the dirham, activity on Morocco’s interbank foreign exchange market increased considerably. Bank Al-Maghrib reported that the volume of foreign currency transactions against the dirham reached approximately $3.05 billion in August 2026, representing an increase of 88.1% compared with August 2025.

This expansion indicates a substantial rise in transactions between financial institutions involving the exchange of foreign currencies against the national currency. Interbank foreign exchange operations serve several purposes, including meeting banks’ currency requirements, managing exchange rate exposure and facilitating payments associated with international trade and financial transactions.

The increase also coincided with higher volumes of foreign currency purchases and sales between banks and their customers, suggesting that activity was rising across different segments of the domestic exchange market.

However, the growth in transaction volumes does not necessarily indicate that demand for foreign currency increased by the same proportion. Trading volumes reflect the total value of transactions carried out during a given period and may include repeated exchanges between market participants.

Banks record higher purchases and sales of foreign currencies

The central bank’s data also reveal an increase in foreign exchange operations between commercial banks and their customers, covering both spot and forward transactions.

In August 2026, banks’ spot purchases of foreign currencies reached approximately $3.49 billion, compared with $3.32 billion in August 2025. Forward purchases recorded a stronger increase, rising to around $1.92 billion from approximately $1.53 billion over the same period.

Foreign currency sales also expanded. Spot sales amounted to approximately $3.74 billion, compared with $3.16 billion a year earlier. Forward sales increased to around $237 million, up from approximately $144 million in August 2025.

These figures illustrate the growing volume of foreign exchange operations handled by Moroccan banks. Spot transactions involve the immediate exchange of currencies, while forward operations allow customers and financial institutions to agree on an exchange rate for transactions to be completed at a later date. The latter can help businesses manage exposure to currency fluctuations, particularly when planning international payments or settling import and export contracts.

The simultaneous increase in purchases and sales suggests that foreign exchange requirements remain active among Moroccan businesses and financial institutions. However, the figures do not establish whether the increase resulted primarily from higher international trade volumes, changes in currency demand or greater use of exchange-rate protection instruments.

Potential implications for imports and domestic prices

The depreciation of the dirham against the US dollar is particularly relevant to Morocco because the country depends heavily on imported energy products, raw materials and several categories of industrial inputs. Many international commodity transactions, especially those involving crude oil, petroleum products and other energy resources, are denominated in dollars.

When the dollar strengthens against the dirham, Moroccan importers need more dirhams to purchase the same amount of foreign currency, assuming prices and other conditions remain unchanged. This can increase the local-currency cost of imports and potentially affect production expenses, transport costs and consumer prices.

Energy imports are an important component of this exposure. Morocco’s energy import bill reached approximately $9.93 billion by the end of August 2026, representing an annual increase of 32.6%. The combination of higher international energy prices and an unfavourable exchange rate can therefore increase the country’s overall import costs.

The effects are not necessarily immediate or uniform across the economy. Importers may have existing foreign currency contracts, advance purchases or financial arrangements that temporarily limit their exposure. Companies may also absorb part of the additional cost through lower profit margins rather than transferring the entire increase to customers.

The depreciation against the euro also matters because European countries are among Morocco’s principal trading partners. A weaker dirham can increase the cost of goods, equipment and services purchased from European suppliers. Conversely, it can potentially improve the price competitiveness of Moroccan products in European markets, although the actual benefit depends on production costs, contractual arrangements and demand conditions.

For Moroccan exporters receiving payments in euros or dollars, the conversion of foreign currency revenues into dirhams can generate higher local-currency receipts. The impact nevertheless varies according to the proportion of imported inputs used in production and the currency in which commercial contracts are concluded.

The exchange rate regime and the role of the central bank

Morocco operates a managed exchange rate system designed to allow gradual flexibility while limiting excessive currency fluctuations. The dirham’s reference rate is based on a basket comprising 60% of the euro and 40% of the US dollar.

Since March 2020, the currency has been allowed to fluctuate within a band of 5% on either side of the central reference rate. Bank Al-Maghrib monitors developments in the foreign exchange market and can intervene when necessary to ensure adequate liquidity and maintain the functioning of the system.

This framework means that movements in the euro-dollar exchange rate have a direct influence on the reference value of the dirham. When the dollar strengthens against the euro, the impact on the national currency depends partly on the respective weights of the two currencies in the basket, as well as developments in the domestic foreign exchange market.

The latest depreciation figures therefore need to be considered alongside international currency movements rather than interpreted solely as evidence of domestic economic weakness.

For Morocco, the main concern is how exchange rate developments interact with the cost of energy, raw materials and other imported goods. The extent to which these movements affect inflation, business expenses and household purchasing power will depend on international commodity prices, domestic market conditions and the ability of companies to absorb or pass on additional costs.

The latest Bank Al-Maghrib figures provide a snapshot of these developments, showing both a weaker dirham against major international currencies and a substantial increase in foreign exchange market activity. Future movements in the euro-dollar relationship, international energy prices and Morocco’s demand for foreign currencies will remain important factors shaping the dirham’s exchange rate and the cost of external trade.