Dollar Nears 10 Dirhams, Adding 379 Dirhams to the Value of $1,000 in 10 Days
The dollar reached nearly 9.99 dirhams on Monday, October 5, after rising almost 4% since September 25. For Moroccans sending dollars home, the exchange rate is becoming more favorable. For those who need to buy dollars, the cost is rising.
The US currency was trading at 9.9898 dirhams late Monday. The Investing.com platform shows a rate close to 9.99 dirhams, with a peak of 9.9973 during the session, just a few fractions of a centime below the 10-dirham mark.
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The rate approached this level after several sessions of gains. The dollar was still worth 9.611 dirhams on Friday, September 25, then 9.7148 on September 30 and 9.9414 on Friday, October 2. Between September 25 and this Monday, it therefore gained about 3.9% against the Moroccan currency.
For $1,000, the difference is becoming significant: their equivalent value has risen from about 9,611 to 9,990 dirhams, or nearly 379 dirhams more. These amounts are calculated at the market rate; for a transfer or exchange, the rate offered and the fees determine the amount actually received.
Nearly 379 dirhams more for $1,000
For an MRE paid in dollars who transfers the same amount to Morocco, this rise means they can get more dirhams. Conversely, a Moroccan resident who has to pay an expense of $1,000 must come up with about 379 dirhams more than on September 25.
The move extends the dirham’s decline seen in September. It is taking place under a managed exchange-rate regime: the Moroccan currency fluctuates within a band of 5% on either side of a central rate, calculated using a basket made up of 60% euros and 40% dollars, according to Bank Al-Maghrib.
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The rise in the dollar also matters for Moroccan companies that pay their suppliers in that currency. For the same invoiced amount, they have to pay out more dirhams, unless they have hedged their exchange-rate risk.
An invoice for $100,000 illustrates the difference: it was worth about 961,100 dirhams at the September 25 rate, compared with nearly 999,000 dirhams this Monday. The additional conversion cost is therefore close to 37,900 dirhams, before bank fees.
