Political sketch
Most of the country independent from France on 2 March 1956; northern zone independent from Spain on 7 April 1956.
The Muslim invasion from the east reached Morocco in the late 600s and later spread from Morocco into Spain. Following the defeat of the Muslim state in Spain in the late 1400s, there were occasional wars between Portugal or Spain and Morocco. In 1830, France invaded neighboring Algeria and from then on, it vied with Spain, the United Kingdom, and later Germany for influence in Morocco. In the 1906 Treaty of Algeciras the European powers affirmed Morocco's independence, but wars of 1907-1912 resulted in France and Spain dividing Morocco into four zones of influence: Spanish Morocco, a strip in the north opposite Spain; French Morocco, comprising most of the country; the Spanish areas of Tafaya and Ifni in the south; and the international city of Tangier in the north. In November 1942, Morocco was invaded by British and U.S. troops seeking to depose the local French administration, which sympathized with the French government of Vichy, and was hence something between neutral and allied with Germany. Unlike French colonies south of the Sahara, Morocco did not become part of the French Union after the war.
Morocco became independent from France on 2 March 1956. The northern zone occupied by Spain rejoined Morocco on 7 April 1956, except for the enclaves of Ceuta and Melilla, which remain Spanish. Morocco was and is today (2005) a monarchy. Several attempted military coups postponed the installation of a parliamentary government until 1977. Independent Morocco fought with Algeria in the 1960s over their border, which had been established by the French. In 1976, after Spain withdrew from Western Sahara, Moroccan troops invaded rather than let the country become independent. Morocco justified its action by appeal to its rule in the region in the era before Spanish rule; most of the people of Western Sahara did not want renewed Moroccan rule. Mauritanian troops invaded the southern part of the country. Algeria supported the Polisario Front guerillas, who desired an independent Western Sahara. After Mauritania's military performed badly, Mauritania renounced its claim and signed a peace agreement with Western Sahara's pro-independence Polisario Front. Morocco subsequently annexed the region. The United Nations has called on Morocco to allow a plebiscite in Western Sahara, which Morocco has refused to do. Occasional guerilla fighting continues today. Exports include clothing, fish, and minerals.
Wars since 1500
Portuguese-Moroccan War of 1578; Moroccan Siege of Melilla, 1774 (Melilla was a Spanish fort); French-Moroccan War of 1844; Spanish-Moroccan War of 1859-1860; Rif War of 1893 (Spain against Rif region tribes); Moroccan Wars of 1907-1912 (Moroccans against France and Spain); Rif War (Abd el-Krim's Revolt) of 1919-1926 (Moroccan tribes against Spain and France); Spanish Civil War, 1936 (Spanish Morocco was quickly taken over by the Nationalist [Franco] forces); Second World War in North Africa, 1942-1943 (United Kingdom, United States, and Free French forces against Germany, Italy, and Vichy French forces); Algerian-Moroccan War of 1963-1964; Algerian-Moroccan Border Clash, 1967; Spanish Saharan War, 1976-1991 (with Mauritania against Algerian-supported Polisario Front Saharan guerillas).
Convertibility
The French franc zone:
When the First World War began, France imposed a moratorium of payments on all negotiable instruments starting 1 August 1914. The moratorium was subsequently extended by decrees until 1 March 1915. The central bank, the Bank of France, abandoned the gold standard on 5 August 1914, although no official prohibition on exporting gold existed until by a decree of 3 July 1915, affirmed by a law of 15 November 1915. A decree of 2 April 1918 prohibited capital exports without authorization. A law of 25 June 1928 officially restored the gold standard and repealed exchange controls. When the French franc was an object of currency speculation , a law of 13 August 1936 imposed extensive exchange controls, supplementing some lesser measures that had been implemented in 1935.
France imposed exchange controls on 9 September 1939 by a decree of that date, soon after the Second World War broke out. On 20 May 1940, capital controls within the franc zone were greatly relaxed by a French decree of that date. Exchanges between France and its African colonies were cut off from the time of the Allied invasion of French Morocco and Algeria in November 1942 to about September 1944, by which time the Allies had liberated Paris and the main French port cities. Exchange controls within the franc zone were not removed until 6 June 1946. Afterwards, French colonial francs became convertible both for current- and capital-account transactions within the French franc zone (France, Monaco, and French possessions, including countries using the CFA franc). Outside the French franc zone it became convertible for current-account transactions when France resumed current-account convertibility, but it was not convertible for capital-account transactions. France had multiple exchange rates from 26 January 1948 until 17 October 1948, and a dual exchange rate from 18 October 1948 to 29 September 1949. On 20 September 1949 it devalued the French franc and unified the exchange rate, taking advantage of the lead offered by the United Kingdom, which had devalued the pound sterling on 18 September 1949.
On 17 October 1959, with Morocco's introduction of a new currency, transactions with the French franc zone became in principle subject to the same exchange controls that had previously applied to other countries. Also on that date, Tangier, which had enjoyed a special status, ceased to be exempt from exchange controls, although the Moroccan government allowed a grace period of six months during which it allowed transactions to be free of controls (IMF ARER 1960: 246).
Spanish colonies:
Spain established exchange rate controls on 31 May 1931 as a result of the Great Depression. It established multiple exchange rates on 3 December 1948 and unified them on 20 July 1959. Exchange controls continued until after Spain ceased to have colonies.
Other
Defaults on or restructurings of debt to the private sector (mainly from Purcell and Kaufman 1993 and Standard & Poor's 2004): 1903-1904 (foreign currency bond debt); 1983 (foreign currency bank debt, oil and interest rate shocks), 1986-1990 (foreign currency bank debt).
Reinhart and Tokatlidis (2000: 33) dating of recent financial liberalization: Domestic (notably interest rates) 1989, external (notably foreign-exchange market and participation by foreign financial institutions) 1993.
Banking crises (data since 1970s mainly from Caprio and Klingebiel 1999 and Frydl 1999): Bank run in July 1914 upon the outbreak of the First World War (Saul 1998: 403); crisis in early 1980s.
Frankel and Rose (1996) list of currency crashes: 1981.
The rebel Rif Republic, of the Rif War (Abd el-Krim's Revolt) of 1919-1926, had notes printed but did not issue them.
References
Primary sources:
--Laws and decrees:
France. Gazette. 1762-present. Gazette de France (1762-1789); Gazette nationale de France (1789-1799); Bulletin des lois (1791-1831; a separate publication); La gazette nationale ou le moniteur universel (1799-1810); Moniteur universel (1811-1848); Moniteur universel: journal officiel de la République française (1848-1852); Journal officiel de l'Empire français (1852-1870); Journal officiel de la République française (1871-1941); Journal officiel de l'État français (Vichy France, 1941-1944); Bulletin officiel des Forces françaises libres (Free France, 1940-1941); Journal officiel de la France libre (Free France, 1941); Journal officiel de la France combattante (Free France, 1941-1943); Journal officiel du Haut commissariat de France en Afrique (Free France, 1943); Journal officiel du Commandement en chef français en Afrique (Free France, 1943); Journal officiel de la République française (Free France, 1943-1944; France, 1944-present). Paris (1762-1940, 1944-present); Vichy (1940-1944); London (Free France, 1941-1943); Algiers (Free France, 1943-1944): Imprimerie des Journaux Officiels (1944?-present). Many issues are in France, Legifrance Web site (see below).
France. Legifrance Web site, <http://www.legifrance.gouv.fr>. Reference site for French treaties, laws, and decrees, including the full text for recent items.
France. Overseas gazette. 1887-1961. Bulletin officiel (1887-1953; new series, 1953-1959); Bulletin officiel de l'administration provisoire des services du Ministère de la France d'Outre-Mer (1959-1961). Issued by Ministère des Colonies (1887-1950); Ministère de la France d'Outre-Mer (1950-1961). Paris: Imprimerie Nationale.
Morocco. Gazette. Bulletin officiel. Rabat: Imprimerie Officielle. (Also in Arabic, Al-jardah al-rasmyah.)
Spain. Gazette. 1836-present. Gazeta de Madrid (1836-1936); Gaceta de la República (1936-1939, Republican forces); Boletín oficial del Estado (1936-1939, Fascist forces; 1939-1961, Spain); Boletín oficial del Estado-Gaceta de Madrid (1961-1986); Boletín oficial del Estado (1986-present). Madrid: Imprenta Real (1836-1936); Imprenta Nacional (1936-present). (The Fascist gazette was printed in Burgos 1936-1939.) Online at <http://www.boe.es>.
--Publications of monetary authorities:
Banco de España. Annual report. 1856-1969. Memoria (1856-1960); Informe sobre la evolución de la economía española (1961-1962; from 1957-1960, published as part of the Memoria); Informe sobre la economía española (1963-1965); Informe anual (1966-1969). Madrid: Banco de España.
Banco Español de San Fernando. Annual report. 1830-1855. Junta general del Banco Español de San Fernando celebrada en ... (1830-1851); Memoria leida en la Junta General de Accionistas del Banco Español de San Fernando ... (1852-1856; other title Memoria--Junta General de Accionistas del Banco Español de San Fernando). Madrid: [Banco Español de San Fernando].
Banco Nacional de San Carlos. Annual report. 1783-1828. Junta general del Banco Nacional de San Carlos or Memoria. Madrid: En la Imprenta de la Vuida de Ibarra. (The first annual report, from 1782, was not printed.)
Banque d'État du Maroc. Annual report. 1907-1959. Assemblée générale ordinaire. Paris: Banque d'État du Maroc.
Bank al-Magrhib (Banque du Maroc). Annual report. 1957-present. Rapport présenté à sa Majesté le Roi. Rabat: Bank al-Magrhib (Banque du Maroc). English translation Annual Report, 1981-present.
Bank al-Magrhib (Banque du Maroc). Bulletin. 1959-1985? Études et statistiques. Rabat: Bank al-Magrhib (Banque du Maroc). (Also in Arabic.)
Bank al-Magrhib (Banque du Maroc).Quarterly bulletin. 1979-present. Bulletin trimestriel. Rabat: Bank al-Magrhib (Banque du Maroc).
--Web site of the current monetary authority (viewed 20 September 2005):
<http://www.bkam.ma>
--Other publications or Web sites:
Comité Monétaire de la Zone Franc. Secrétariat. 1953-present. Premier [etc.] rapport annuel du Comité de la zone franc établi en exécution du décret du 5 fevrier 1952 (art. 4, §2) (1953-1956); La zone franc en 1957: cinquième rapport annuel du Comité Monétaire de la Zone Franc (1957); La zone franc en ...: rapport publié par le Secrétariat du Comité Monétaire de la Zone Franc (1958-1983); La zone franc: rapport ...: publié par le Secrétariat du Comité Monétaire de la Zone Franc (1984-1991); La zone franc: rappport annuel ...; publié par le Secrétariat du Comité Monétaire de la Zone Franc (1992-2003; inside page says La zone franc en ...); Rapport annuel de la zone franc (2004-present; inside cover says La zone franc: rapport annuel ...). Paris: Imprimerie Nationale (1953-1956); Secrétariat du Comité Monétaire de la Zone Franc (1957-1991; 1957 is a mimeo with no explicit publication information); Banque de France (1992-present). Recent issues are available on the Web site of the Banque de France, <http://www.banque-france.fr/fr/eurosys/zonefr/zonefr.htm>.
France. Commision de Surveillance des Banques Coloniales. 1875-1939. Rapport au président de la république sur les opérations des banques coloniales d'émission pendant l'exercise ... (1873/1874-1936/1937); Rapport au président de la république sur les opérations des banques coloniales d'émission ... (1927/1929-1936/1937). Paris: Imprimerie Nationale.
Main secondary sources:
Bank al-Magrhib. Bank al-Magrhib. Rabat, Morocco: Bank al-Magrhib.
Bouarfa, Mohamed. 1988? Le rial et le franc: les antécédents internationaux du système monétaire marocain. Rabat: INMA.
IMF ARER. 1950-present. International Monetary Fund. Annual Report on Exchange Restrictions (1950-1978), Annual Report on Exchange Arrangements and Exchange Restrictions (1979-1988), Exchange Arrangements and Exchange Restrictions: Annual Report (1989-present). Washington: International Monetary Fund. (Contains information on IMF member countries and some of their dependencies.)
Marty, André J. 1951. Le franc marocain, monnaie satellite. Paris: Librarie Générale de Droit et de Jurisprudence. (Concerns Morocco.) (I have not seen this.)
Mateu y Llopis, Felipe. 1948. La moneda española (breve historia monetaria de España). Barcelona: Editorial Alberto Martín. (History of Spanish currency.)
Mazard, Jean. 1953. Histoire monétaire et numismatique des colonies et de l'Union française, 1670-1952. Paris: Émile Bourgey.
Saul, Samir. 1998. "La Banque d'État du Maroc et la monnaie sous le protectorat." In Comité pour l'Histoire Économique et Financière de la France, La France et l'outre-mer: un siècle de relations monétaires et financières: 389-427. Ministère de l'Économie, des Finances et de l'Industrie. Paris: Imprimerie Nationale.
Symes, Peter [J]. 2002a. "The Notes of the Rif Revolt." I.B.N.S. Journal (International Bank Note Society Journal), v. 41, no. 3. Also at <http://www.pjsymes.com.au/articles/RifRevolt.htm>, viewed February 2004.
Torres, Félix. 2000. Banquiers d'avenir: des comptoirs d'escompte à la naissance de BNP Paribas. Paris: Albin Michel. (This bank and its corporate ancestors had branches in a number of countries.)
Monetary authorities: French and united Morocco
| Dates | Type | Name | Source | Remarks |
| 1897
-21 April 1907 |
dollarization | foreign and Moroccan coins | France, arrêté of 7 March 1848; decree of 8 March 1848; law of 10 June 1853 (all relating to Comptoir National d'Escompte de Paris); all cited in Legifrance | The first bank was apparently the Comptoir National d'Escompte de Paris (headquarters Paris, France), which opened offices in Tangier in 1897 and in Casablanca in 1904 (Torres 2000: 41). The central bank, below, later took over this bank's operations. The second bank was apparently the Crédit Foncier d'Algérie et del la Tunisie (headquarters Algiers, Algeria), which opened an office in perhaps Tangier in 1906 (Bank al-Maghrib [Banque du Maroc] bulletin, June 1977: 9). |
| 22 April 1907
-30 June 1959 |
central bank (privately owned, with commercial banking operations) | Banque d'État du Maroc (headquarters Tangier, Morocco) | Treaty of Algeciras (Spain) between Morocco and the leading European powers plus the United States, 7 April 1906; France, act of incorporation of Banque d'État du Maroc, 28 February 1907 | The central bank was
owned by an
international
consortium, managed
initially by the Banque
de Paris et du Pays-Bas (headquarters
Paris, France). It took
over the branches of
the Comptoir National
d'Escompte de Paris.
Deposit operations
began on 22 April
1907; bons de caisse
that could circulate
hand to hand with
endorsement were
issued in 1909; and the
bank issued its first
notes on 2 December
1910 (Mazard 1953:
97). Coins had been
minted since the 100s
BC; the first coins
under French rule were
issued in 1910.
Morocco joined the
IMF on 25 April 1958.
Note: Tangier was an international city, and as such both Moroccan and Spanish currency circulated freely there. |
| 1 July 1959
-present (2005) |
central bank (government owned) | Bank al-Maghrib (also called Banque du Maroc until 1987) (headquarters Rabat, Morocco) | Morocco, Dahir (decree) No. 1.59.233, 30 June 1959, reprinted in Bank al-Maghrib Web site, viewed 19 September 2005 | Converted the central bank to government ownership a few years after the end of the French protectorate. The central bank took over issuance of coins from the Moroccan Treasury. The commercial banking operations of the former Banque d'État du Maroc were spun off as the Société Internationale de Financement et de Placements (headquarters Casablanca, Morocco?). |
Monetary authorities: Spanish Morocco (to 1969)
| Dates | Type | Name | Source | Remarks |
| Northern Morocco:
1907
-17 February 1958; Tafaya: 1800s -April 1958; Ifni: about 6 April 1934 -about 30 June 1969 |
dollarization | Spanish real / escudo from 1865 / peseta from 1870; notes in Spain were issued by the private quasi-central bank Banco Nacional de San Carlos (headquarters Madrid, Spain) 1782-1829; by the affiliated private quasi-central bank Banco Español de San Fernando (headquarters Madrid, Spain) 1829-1844; by multiple free banks 1844-1874; and by the central bank Banco de España) from 1874 | Spain (Castile), royal
decree of 13 June 1497
(regarding Spanish
real), cited in Hamilton
(1965 [1934]: 51);
royal decree of 15
April 1848
(decimalizing real),
cited in Mateu y Llopis
(1946: 286); law of 26
June 1864 (introducing
escudo), cited in Mateu
y Llopis (1946: 287-8);
decree of 19 October
1868 (introducing
peseta), cited in Mateu
y Llopis (1946: 289-90); Spain, decree-law
of 24 March 1874
(granting monopoly of
note issue to Banco de
España), cited on
Banco de España Web
site, viewed 10
December 2005
|
On the first banks in Tangier, which was an international city, see the preceding table. During the Spanish civil war of 1936-1939, Madrid, the headquarters of the Bank of Spain, was controlled by Loyalists. Spanish Morocco was quickly occupied by the opposing Nationalist (Franco) government, whose headquarters was in Burgos, Spain. Only Bank of Spain notes overstamped by the Burgos government were valid in Spanish Morocco (Banque d'État du Maroc annual report 1936 [dated 31 May 1937]: 6). Northern Morocco ceased to be a Spanish colony on 7 April 1956. Ceuta (Sebta) and Mellila, which remain Spanish territory, continue to use Spanish currency. From 1 January 1999-31 December 2001 the Spanish peseta was simply a subdivision of the European euro, and on 1 January 2002 euro notes and coins replaced peseta notes and coins. I have been unable to find out whether liability for coins was ever transferred from the Spanish Treasury to the central bank in the 1900s. |
Exchange rate arrangements: French and united Morocco
| Dates | Official arrangement | Source | Unofficial arrangement, if different | Remarks |
| 1881
-1902 |
fixed; 1 Moroccan rial makhzani (also called rial hassani) = 26.2944g silver | Saul (1998: 390-1); Mazard (1953: 95); both agree that the real makhzani was 0.900 fine silver, but Saul says its gross weight was 29.116g while Mazard says it was 29.216g. | The previous currency, the Moroccan dinar, had been in use for centuries, but gold dinar (mithqal) coins had disappeared from circulation in the 1700s, though the dinar was still used as the unit of account. By the start of this period the coins in circulation were local bronze coins plus foreign silver coins, especially the French 5-franc piece (known locally as the "little real") and Spanish 5-peseta pieces (known in Spain as the duro or in Morocco as the "big real"). To replace the foreign coins, King Hassan I (Moulay Hassan) introduced the rial (real) hassani. The dirham was a subdivision, 1/10 rial. The rial hassani was a decimal currency. "Rial" comes from the Spanish real, meaning "royal," while "hassani" came from the king's name. "Dirham" is an Arabic word deriving from the Greek drachma coin. In practice, the Spanish 5-peseta piece continued to circulate. The real makhzani, accepted by the public as simply equal to the 5-peseta piece in value, disappeared from circulation because the real contained slightly more silver. | |
| 1902
-21 April 1907 |
fixed; 1 Moroccan peseta hassani = 4.5g silver | Saul (1998: 392) | Hassan's successor, Abd el Aziz, changed the currency unit (5 pesetas hassani = 1 rial Hassani) and devalued the currency moderately, to parity with the silver Spanish peseta and French franc coins, as a means of gaining revenue. Because of fluctuations in the price of silver with respect to gold, the value of the peseta hassani fluctuated with respect to many other currencies, such as the French franc. The international Treaty of Algeciras, 7 April 1906, gave the Banque d'État du Maroc a monopoly of domestic note issue, but explicitly recognized the circulation of Spanish money in Morocco and but did not forbid foreign currency from circulating. During and after the First World War, the price of silver appreciated against gold and major currencies, and the peseta hassani appreciated with it. | |
| 22 April 1907
-18 March 1920 |
pegged; 1 Moroccan peseta hassani = 4.5g silver | Treaty of Algeciras (Spain) between Morocco and the leading European powers plus the United States, 7 April 1906; France, act of incorporation of Banque d'État du Maroc, 28 February 1907; Mazard (1953: 97) | From January-17 September 1917 the currency was in practice stabilized at 1.24 Moroccan pesetas hassani = 1 French franc (Mazard 1953: 98). From 18 September 1917-7 October 1917 the rate was 1.10 Moroccan pesetas hassani = 1 French franc (Morocco, order of 18 September 1917 to Banque d'État du Maroc, cited in Saul (1998: 408). From 8 October 1917-15 October 1916 the rate was 1 Moroccan peseta hassani = 1 French franc, by Morocco, order of 8 October 1917 to Banque d'État du Maroc, cited in Saul (1998: 408). The rate per French franc was then as follows: 16 October 1919-30 December 1919: 0.625; 31 December 1919-7 February 1920: 0.6897; 8 February 1920-18 March 1920: 0.525 (Saul 1998: 409). | Morocco established a central bank, so the exchange rate changed from fixed to peged. |
| 19 March 1920
-4 September 1928 |
pegged; 1 Moroccan franc = 1 French franc | Morocco, dahir of 19 March 1920; dahir of 21 June 1920; both in Mazard (1953: 98) | Switched to the French franc as the anchor currency, reflecting the importance of trade with France and French financial interests in Morocco. The Moroccan franc replaced the peseta hassani at 2 Moroccan francs = 1 Moroccan peseta hassani, or 10 Moroccan francs = 1 Moroccan rial hassani. The French franc at the time had a floating exchange rate, and had depreciated against the silver rial hassani notes and coins, which were henceforth demonetized. Algerian notes had been legal tender since 6 August 1914 (Morocco, dahir of 5 August 1914, cited in Saul 1998: 403), as a measure to allay panic at the start of the First World War. The local franc in Algeria was equal to the French franc. By early 1925 Algerian notes were deprived of legal tender status. (Morocco, dahir of 30 December 1924, cited in Saul 1998: 415; a viceregal arrêté of 4 July 1922, effective 1 July 1922, cited in Saul 1998: 414 had been unsuccessful in discouraging their circulation). The name "franc" for the currency came from the French franc. | |
| 5 September 1928
-24 September 1936 |
pegged; 1 Moroccan franc = 0.05895g gold = 1 French franc | Morocco, dahir of 5 September 1928, cited in Banque d'État du Maroc annual report 1936 (dated 31 May 1937): 5 | The dahir defined the Moroccan franc in terms of gold (technically, 0.0655g, 0.900 fine) and obligated the Banque d'État du Maroc to redeem its notes in gold bullion. France had returned to the gold standard by France, law of 25 June 1928. | |
| 25 September 1936
-November 1942 |
pegged; 1 Moroccan franc = 1 French franc | Morocco, dahir of 7 October 1936, cited in Saul (1998: 417); dahir of 31 December 1936, cited in Banque d'État du Maroc annual report 1936 (dated 31 May 1937): 5; see also pages 3-4 of the annual report | The Banque d'État du Maroc suspended the convertibility of its notes into gold upon the request of the Moroccan government, and following France's suspension the same day. The dahir of 31 December 1936 validated this decision retroactively. | |
| November 1942
-2 February 1943 |
pegged; 300 Moroccan francs = UKŁ1 and 50 Moroccan francs = US$1 | Mazard (1953: 106) | Switched to the pound sterling and US dollar as the anchor currencies following the Allied invasion of North Africa during the Second World War. These exchange rates, imposed unilaterally by the British and US invasion force, were a substantial depreciation from the prewar cross rates of 176.625 French francs = UKŁ1 and 43.80 French francs = US$1. The metropolitan French franc was still under the control of the Vichy regime. France, arrêté of 18 December 1945, for legal purposes declared the period of interruption of communications between France and its colonies as having lasted from 5 November 1942-31 December 1944. | |
| 3 February 1943
-5 December 1944 |
pegged; 200 Moroccan francs = UKŁ1 and 50 Moroccan francs = US$1 | Anglo-Free French agreement of 2 February 1943, cited in Mazard (1953: 106) | The Free French government persuaded the British and US governments to adopt exchange rates that represented much less of a devaluation than those they initially imposed when invading North Africa. The new rates applied also to local francs in other areas under the control of the Free French government, which by this time included almost all French colonies. Morocco was not officially a French colony, but it was under French influence. | |
| 6 December 1944
28 December 1958 |
pegged; 1 Moroccan franc = 1 French franc | Anglo-Free French agreement of 8 February 1944, cited in Mazard (1953: 106) | RR: Multiple exchange rates. (Perhaps RR are referring to the French franc, which had multiple rates for a time. Because it was the anchor currency for the Moroccan franc, the Moroccan franc indirectly had multiple cross rates with third currencies.) | Following the liberation of most of France by the Allies during the Second World War, the metropolitan French franc was devalued to the level of the overseas francs under Free French control (200 French francs = UKŁ1, or 50 French francs = US$1). Doing so in effect restored the French franc as the anchor currency. |
| 29 December 1958
-11 January 1959 |
pegged; 1 Moroccan franc = 1.175 old French francs | IMF ARER (1959: 229) | Did not follow the devaluation of the French franc on 27 December 1958. on 12 January 1959 and removed it on 17 October 1959. | |
| 12 January 1959
-17 October 1959 |
pegged, dual rate; 1 Moroccan franc = 1.175 old French francs | Bank al-Magrhib (Banque du Maroc) annual report, 29 June 1959: 4 | Morocco imposed a 10% surcharge (prélèvement) on transfers to the French franc zone, to stemp capital flight. | |
| 18 October 1959
-18 October 1959 |
pegged; 1 Moroccan franc = 1.175 French francs | IMF ARER (1960: 245-6) | Removed the surcharge on transfers to the French franc zone. | |
| 19 October 1959
-31 December 1959 |
pegged; 1.025 Moroccan dirhams = 100 French francs, or 1 Moroccan dirham = 0.175610g gold | Morocco, dahir of 17 October 1957, cited in IMF ARER (1960: 246); Bank al-Magrhib (Banque du Maroc) annual report, 28 June 1960: 8 | RR: Data begin January 1959. The parallel market premium against the US dollar was around 10% from October 1959, whereas the French franc had almost no premium. | Introduced a new currency at 1 Moroccan dirham = 100 Moroccan francs. The name of the new currency came from a Moroccan coin used around 1900; see above. The exchange rate against the French franc represented a devaluation of 2.5%. Morocco registered its gold parity with the IMF 16 October 1959, slightly before the dirham was actually introduced. |
| 1 January 1960
-10 August 1969 |
pegged; 1.025 Moroccan dirhams = 1 new French franc, or 1 Moroccan dirham = 0.175610g gold | France, Ordonnance No. 58-1341, 27 December 1958; Ministry of Finance and Economic Affairs, Circulaire du 19 novembre 1959 relative au nouveau franc, 19 November 1959; Decree No. 59-1450, 22 December 1959 | RR: Parallel market premium typically in low double digits. | France redenominated its franc at 1 new French franc = 100 old French francs. |
| 11 August 1969
-23 August 1971 |
pegged; 1 Moroccan dirham = 1.09755 French francs = 0.175610g gold, or 5.06049 dirhams = US$1 | IMF ARER (1970: 344, 348) | RR: Parallel market premium typically in single digits. | Revalued the dirham against the French franc after France devalued the French franc against gold and the US dollar on 10 August 1969. |
| 24 August 1971
-17 December 1971 |
pegged; 1 Moroccan dirham = 1.09755 French francs, or 5.06049 Moroccan dirhams = US$1 | IMF ARER (1972: 303) | RR: Parallel market premium negligible. | Gold convertibility for all countries ended in practice when the United States abandoned the gold standard on 15 August 1971. Like the United States, Morocco ceased quoting an official exchange rate for gold. The rate against the French franc was for the commercial French franc; the rate against the financial French franc floated. France established a dual exchange rate on 21 August 1971. |
| 18 December 1971
-14 February 1973 |
pegged; 1 Moroccan dirham = 1.09755 French francs = 0.17561g gold (nominally), or 4.66097 Moroccan dirhams = US$1 | Bank al-Magrhib (Banque du Maroc) annual report 1971: 10; IMF ARER (1972: 303) | RR: Parallel market premium in single digits. De facto moving band around French franc. Band width +/-2%. Dual rates with trivial parallel market premiums. | Did not follow the devaluation of the US dollar against gold on 18 December 1971. The Moroccan dirham nominally returned to its former par value against gold, which had been suspended in the previous period. Morocco adopted wider margins. |
| 15 February 1973
-16 May 1973 |
pegged; 1 Moroccan dirham = 1.09755 French francs = 0.17561g gold (nominally), or 4.19488 Moroccan dirhams = US$1 | IMF ARER (1974: 308) | RR: Parallel market premium in single digits. De facto moving band around French franc. Band width +/-2%. Dual rates with trivial parallel market premiums. | Did not follow the devaluation of the US dollar on 13 February 1973. |
| 17 May 1973
-29 July 1973 |
flexible basket; official rate 1 Moroccan dirham = 0.17561g gold (nominally) | Bank al-Magrhib (Banque du Maroc) annual report 1973: 11, 63; IMF ARER (1974: 308) | RR: Parallel market premium in single digits. De facto moving band around French franc. Band width +/-2%. Dual rates with trivial parallel market premiums. | Ceased quoting a pegged exchange rate with the commercial French franc and starting using a basket as a reference. The precise composition of the basket was not disclosed. |
| 30 July 1973
-31 March 1978 |
flexible basket, dual rate; official rate 1 Moroccan dirham = 0.17561g gold (nominally) | Morocco, Dahir No. 1-73-400, 30 July 1973, cited in IMF ARER (1974: 308); Bank al-Magrhib (Banque du Maroc) annual report 1973: 12 | RR: Parallel market premium in single digits. De facto moving band around French franc. Band width +/-2%. Dual rates with trivial parallel market premiums. | Established a dual rate by offering a 5% bonus (the "fidelity premium") for foreign exchange repatriated through banks or postal transfers by Moroccans abroad. |
| 1 April 1978
-31 December 1985 |
flexible basket, dual rate (IMF: manged float from 1 July 1982) | International Monetary Fund, Board of Governors, Resolution No. 31-4, 30 April 1976 ("Second Amendment") | RR: Parallel market premium typically in single digits. De facto moving band around French franc. Band width +/-2%. Dual rates with trivial parallel market premiums. | The system of gold par values officially ended by agreement of IMF members. The "fidelity premium" continued; as of 1981, it was calculated to ensure beneficiaries a rate of 1 Moroccan dirham = 1 French franc, but on 1 July 1982, during a period of depreciation of the French franc, the central bank changed it back to a premium of 5%. In 1985, Morocco made numerous small changes to devalue the exchange rate from 0.99575 Moroccan dirhams = 1 French franc on 30 December 1984 to 1.27645 Moroccan dirhams = 1 French franc on 31 December 1985. (IMF ARER 1982: 29, in the front matter, says the fidelity premium was abolished on 1 January 1981, but IMF ARER: 304, in the country summary of Morocco, continues mention of it as of the end of 1981.) |
| 1 January 1986
-present (2005) |
flexible basket (IMF: reclassified as flexibility limited when the category began in 1997, reclassified as conventional peg [which includes baskets] when the category began in 1998) | IMF ARER (1987: 351, 357) | RR: Parallel market premium neglible from 1992 until December 1998, when data end. De facto moving band of +/-2% around French franc to 31 December 1998. De facto moving band of +/-2% around European euro 1 January 1999-December 2001, when data end. | The "fidelity premium" and hence the dual exchange rate apparently ended in 1986. An interbank foreign-exchange market began on 3 June 1996; previously all foreign-exchange transactions had occurred through the central bank (IMF ARER (1997: 587. On 1 January 1999 the European euro replaced six of the eight currencies in the basket (IMF ARER 2000: 614). On 25 April 2001 Morocco devalued 5% against the basket to offset strong appreciation in the US dollar component of the basket (IMF ARER 2002: 653). |
Exchange rate arrangements: Spanish Morocco (to 1969)
| Dates | Official arrangement | Source | Unofficial arrangement, if different | Remarks |
| 17 September 1497
-1848 |
fixed; used Spanish currency, especially Spanish silver real | Spain, royal decree of 13 June 1497 (regarding Spanish real), implied in Mateu y Llopis (1946: 238) | See the table for Spain on parallel market data for the Spanish peseta. | Melilla was occupied by the Spanish on 17 September 1497. Through the long history of the real, the coin was frequently devalued. In 1686, the Spanish king Carlos (Charles) II introduced the real de vellón. The piece of eight (piastre) was worth 20 reales de vellón or 10 of the new reales introduced in 1737. Real is Spanish for "royal." Vellón is an alloy of silver and copper. |
| 1848
-30 June 1865? |
fixed; used Spanish currency | Spain, decree of 15 April 1848, cited in Mateu y Llopis (1946: 286) | The type of Spanish real in use from 1848 was a decimal currency, unlike its predecessors. In principle, Spain had a bimetallic currency with the real as the main unit of account; in practice, the world price of gold in terms of silver started falling about 1849 because of discoveries of gold, and the basis in practice of the Spanish monetary system were small-denomination coins made from vellón. Contrary to the general practice the time, these coins were token coins. | |
| 1 July 1865?
-30 June 1870? |
fixed; used Spanish escudo | Spain, law of 26 June 1864, cited in Mateu y Llopis (1946: 287-8) | The law mandated use of the escudo as the monetary unit of all Spanish colonies (1 escudo = 10 silver reals and 10 escudos = 1 gold doubloon). Escudo is Spanish for "shield." Within Spain, the multiple note-issuing banks of the time issued continued to issue notes in reals until the Banco de España received a monopoly of note issue in 1874. The remark above about vellón coins continued to apply. | |
| 1 July 1870?
-16 February 1958 (except Ifni, which continued to be Spanish territory until 30 June 1969) |
fixed; used Spanish peseta | Spain, decree of 19 October 1868, cited in Mateu y Llopis (1946: 289-90) | Spain created the peseta as its standard monetary unit (2.5 pesetas = 1 escudo and 1 peseta = 4 reales). The first peseta coins were not issued in Spain until 1869. "Peseta" was the name of a type of coin issued in Catalonia as early as the early 1400s. Spanish bank notes continued to be denominated in escudos, and the first peseta notes were not issued until 1 July 1874. The peseta and its subsidiary coins replaced the vellón coins. Officially the peseta was at first bimetallic, worth either 5.04g of silver or 0.3215g gold. These weights made it worth slightly more than the currencies of the Latin Monetary Union (French, Belgian, and Swiss francs; Italian lira; and Greek drachma). The Latin Monetary Union placed restrictions on the coinage of silver in 1878--a step toward the gold standard. Spain took the opposite tack and ceased coining gold in 1883, making the peseta a silver standard currency. The variety of the Spanish peseta issued from 1870 containing 4.5g silver was known in Morocco as the peseta hassani. Former Spanish territory in Morocco was united monetarily with former French territory |