Today, we seek to solve an age-old puzzle: opting for the liquidity and ease of use that MAD offers, or the stability and hedge against inflation that saving in US dollars provides. To arrive at a resolution, we will look into Morocco’s current economic situation, future economic predictions, and the prospects of saving in either USD or MAD.
So, if you’re wondering which is best for you to save in right now — USD or MAD —, you can get on the trail and let’s find out together. It might get complex, but we will stick to simple terms. Let’s dive right in.
Establishing a baseline: understanding the current currency situation in Morocco
Before we get into the puzzle proper, it’s worth exploring Morocco’s current economic backdrop.
The nation has enjoyed a fairly stable economy in recent times. Inflation has been low and well-controlled. Bank Al-Maghrib has kept its key policy interest rate steady at 2.25% since March 2025, and views it as supportive of economic activity given the low inflation rate. The country’s foreign exchange reserves are doing great. It is a somewhat great economic season.
Meanwhile, Morocco is still subject to global pressures like almost every other country. Since the country uses an ‘intermediate exchange rate regime of fixed parity’, the currency basket is pegged at 60% to the euro and 40% to the US dollar. There is a ±5% fluctuation allowance. This means that while the dirham is pegged to the USD and EUR, its value is allowed to fluctuate by no more than 5% from the central rate. The Central Bank of Morocco ensures the exchange rate stays within the target band.
If you have made it this far without getting lost, we can just skip to the good part, where we tell you the pros and cons of saving in either USD or MAD.
Also read: Top virtual banking solutions for freelancers in Morocco
Saving in MAD
Saving in MAD is practical and essential for Moroccans in everyday life and domestic financial needs.
Pros
- Low and stable inflation: Morocco’s inflation rate is currently low and stable, and is projected to remain like that for some time. This means the local economic situation is unlikely to eat into your dirham savings.
- Official currency: The dirham is the only currency you can use everywhere in Morocco (shops, restaurants, local services). Using USD or EUR directly for everyday transactions will often result in poor exchange rates and significant losses due to conversion fees.
- Economic stability: Because of how the MAD is pegged to the EUR and USD, as we explained earlier, it provides relative stability and protects it from extreme global currency fluctuations.
- Accessibility and regulation: Keeping savings in the local currency within the Moroccan banking system is straightforward and compliant with local foreign exchange regulations.
- Higher yield in returns: The interest rates on MAD savings are generally better than those in USD, even after factoring in the inflation rate.
Cons
- Limited access to global markets: Due to currency restrictions and the dirham’s less popularity in international financial markets, saving exclusively in MAD might limit flexibility for international investments or major purchases abroad.
- Volatility risk: While the dirham is currently stable, volatility remains a risk. With the country transitioning to a fully floating exchange rate system in the future, this volatility and risk of depreciation worsen. This can reduce the value of MAD savings when converted to other currencies.
- Local banking problems for international payments: Traditional banks sometimes struggle with managing international payments. Local cards might not work well with global payment platforms. Currency conversion is sometimes difficult, delayed, or comes with unfair markups. Don’t get us started on the cumbersome paperwork.
Saving in USD
Saving in USD offers greater stability and appears to be an attractive option.
Pros
- Protects against dirham depreciation: While the MAD has been relatively stable, holding a strong international currency like the USD can provide a hedge if the dirham were to depreciate significantly over the long term due to unforeseen economic shifts.
- International needs: If you have future plans for international travel, education abroad, or importing goods, having savings in a hard currency like USD helps you avoid conversion costs and exchange rate risks at the time of the expense.
- Global strength: The USD is easily the world’s most widely used currency. While its performance against the dirham can vary, it has proven to be a reliable long-term store of wealth.
- Flexibility for foreigners or remittances: If you receive money from abroad (family remittances, freelance income, wages from foreign companies), keeping USD lets you avoid repeated conversion losses.
Also read: How to open US, UK and Euro bank accounts in Morocco
Cons
- Limited liquidity: You can only spend MAD in Morocco. So, if you’re saving in USD, you cannot spend it in Morocco without converting to dirhams first.
- Transaction costs: Depending on the platform you use, you will incur various fees when managing USD savings from Morocco, including:
- Currency conversion fees.
- Account maintenance fees
- Wire transfer fees
- ATM withdrawal fees
- Low interest rates: Foreign currency accounts usually offer low or no interest, unlike local savings accounts. This means your savings might not grow enough to outpace inflation or account fees.
Also read: How freelancers in Morocco can switch from traditional banks to Grey
Saving in US dollars vs MAD: what’s best for Moroccans right now?
Now that we have all the pieces of the puzzle in place, what’s best for Moroccans right now — saving in USD or MAD?
Saving in USD or MAD each has advantages and drawbacks. Saving in USD as a Moroccan resident means that you might be hedging against MAD devaluation, but face limited liquidity. Saving in MAD offers more local financial liquidity and interest yield, but risks devaluation.
In the end, striking a balance between both currencies is the most reasonable way to solve this puzzle. This way, you are not keeping all your eggs in one basket. You can milk the benefits of either currency while minimising the impact of their individual drawbacks.
It gets better. Using a platform that allows you to manage both currencies seamlessly is a game-changer. With low transaction fees, fair exchange rates, and swift processing, Grey provides Moroccans with access to multi-currency accounts supporting USD, EUR, and GBP. You can easily withdraw MAD to your local bank account and access a virtual USD debit card for your international purchases.
Get started on Grey today and manage your finances the smarter way.
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