Euro to dirham exchange rates: MRE card payment costs revealed

On July 17, Banque Populaire displayed a buying rate of 10.383 dirhams per euro. Concretely, a traveler or a Moroccan residing abroad handing 1,000 euros to the bank would receive 10,383 dirhams.

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But several payments made in Morocco, on different days, with a multi-currency card show significantly higher rates: 10.5312, 10.5544, 10.5556 and 10.5563 dirhams per euro. No additional fees appear on the four transactions reviewed.

At the best observed rate, 1,000 euros thus represent 10,556.30 dirhams in expenses, or 173.30 dirhams more than when exchanging cash at the buying rate displayed by the bank. Across all payments examined, the average rate approaches 10.54 dirhams, for a gain of approximately 157 dirhams per 1,000 euros.

Two very different operations

This comparison must however be qualified. In the first case, the bank buys euros, generally in the form of banknotes, by applying its buying rate. In the second, the card automatically converts to euros a purchase billed in dirhams.

The bank must notably integrate its margin and costs related to cash handling. The payment provider can apply a rate closer to the market. As a reference, Bank Al-Maghrib still displayed a reference rate of 10.6584 dirhams per euro on July 15. This indicative rate does not however directly correspond to the rate at which an individual can buy or sell their currency.

The card used for the transactions examined was a card from a neobank whose arrival in Morocco was delayed by the authorities. However, this is only one example: other banks or international cards may apply commissions on payments abroad, an increase in exchange rate or monthly limits.

Always choose the dirham

The most important reflex is to request payment in Moroccan dirhams. Some terminals offer the foreign customer the option to pay directly in euros. This conversion, called dynamic currency conversion, is then carried out by the merchant or their provider, often with a less favorable rate.

It is generally better to refuse this option and let your own bank convert the amount. Before departure, it remains essential to check payment fees outside the eurozone, exchange conditions on weekends and the limits provided by your card.

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Card payment does not completely replace cash, still necessary in many small shops, notably the famous hanouts. But before exchanging a large sum, comparing the bank rate to the rate actually applied by your card can avoid leaving more than 150 dirhams on each 1,000 euro increment.