Thursday, December 10, 2009

Moroccan Money


Morocco’s currency is called the Moroccan Dirham. As of now, the nominal exchange rate for one Moroccan Dirham equals 0.132088 U.S. dollars. The Dirham is the most liquid form of money in Morocco and it has been the stable form of currency since Morocco gained its independence from France in 1956 and it officially replaced the French franc in 1974. The Dirham is a good medium of exchange, store of value, and unit of account because it is accepted by all firms and households in Morocco as the only form of money that buyers give to sellers in exchange for goods and services. Households and firms also use the Dirham as a measurement that Moroccans use to post prices and record debts. The Dirham is also an item that Moroccans can reliably save, store, and retrieve for future purposes and it will be useful when it is retrieved. The Moroccan Dirham is fiat money which is officially decreed by the central bank of Morocco, called the Bank Al-Maghrib. The Bank Al-Maghrib is based in the capital of Rabat and it holds reserves of foreign currency with an estimated worth of 36 billion U.S. dollars. In addition to currency management, Bank Al-Maghrib also has a number of privatized banks thay it supervises by supplying retail services. Inflation in Morocco is only growing at a 2% rate, which is average for developed countries.

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