The dirham's fluctuation band

Since 2018, the Moroccan dirham is no longer strictly pegged: it moves freely within a fluctuation band around a central rate set by Bank Al-Maghrib. Here is how this exchange rate regime works, and where the dirham stands today.

History

5 years inside the fluctuation band

Daily deviation of the USD/MAD rate from the central rate, between the ±5% limits. Below zero, the dirham is stronger than its central rate against the dollar; above, weaker. Source: Bank Al-Maghrib.

Deviation from central rate (%)

Definition

What is the fluctuation band?

The dirham is anchored to a currency basket made of 60% euro and 40% US dollar, weights in force since 2015 that reflect the structure of Morocco's external trade. Bank Al-Maghrib derives a central reference rate from this basket.

The market exchange rate may deviate from this central rate within a limit of ±5%. As long as the dirham stays inside the band, supply and demand freely set its price. If the rate reaches a limit, the central bank intervenes in the foreign exchange market, buying or selling currencies, to bring it back inside.

History

A gradual widening

The band was widened in steps, as part of Morocco's gradual transition towards a more flexible exchange rate regime, carried out with IMF technical support:

Before 2018±0.3% band: a quasi-fixed peg, with the dirham mechanically tracking the basket.

January 15, 2018Widened to ±2.5%: the first step of the flexibilisation. The interbank FX market starts playing a role in price formation.

March 9, 2020Widened to ±5%, still in force: the dirham absorbs more external shocks without draining FX reserves.

The stated goal: strengthen the Moroccan economy's ability to absorb external shocks, preserve FX reserves and prepare, in time, a move to a more flexible regime.

Today

Where does the dirham stand in its band?

Position of the USD/MAD rate within the fluctuation band as of July 15, 2026. In the reference data published by Bank Al-Maghrib, the band is expressed against the US dollar.

9.33 MAD · −3.0 %

Lower limit (−5%) · 9.14

1 dollar buys fewer dirhams: the dirham is at its STRONGEST against the dollar.

Central rate · 9.62

The pivot: the dirham's value derived from the 60% euro / 40% dollar basket.

Upper limit (+5%) · 10.10

1 dollar buys more dirhams: the dirham is at its WEAKEST against the dollar.

As of July 15, 2026, the rate (9.33 MAD per dollar) is BELOW the central rate (−3.0 %): the dirham sits in the strong half of its band against the dollar.

See the full US dollar / dirham page

FAQ

Frequently asked questions about the dirham's regime

Is the dirham a floating currency?

No. Morocco's regime is intermediate: the dirham floats freely, but only within a ±5% band around a central rate anchored to the 60% euro / 40% dollar basket. It is a gradual flexibilisation, not a free float.

What happens when the rate reaches a band limit?

Bank Al-Maghrib intervenes in the FX market: it sells foreign currency when the dirham reaches the depreciation limit, or buys it in the opposite case, until the rate moves back inside the band.

Why widen the fluctuation band?

A more flexible regime lets the economy absorb external shocks (commodities, tourism, remittances) through the exchange rate rather than through FX reserves, and gives monetary policy more autonomy. Gradual widening gives market participants time to adapt.

Where can I track the dirham?

Bank Al-Maghrib's reference rates for 30 currencies are tracked daily on our currency pages, with history and performance.

Go further

US dollar / Dirham (live band) ›Euro / Dirham ›All currencies ›

Data updated automatically · last update: July 15, 2026

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