1 Dinar – Morocco

In 1786, the currency situation in the Alawite Sultanate of Morocco was characterized by significant complexity and instability, rooted in both internal governance and intense foreign pressure. The primary circulating coins were the silver dirham and the gold benduqi, but their value and purity were inconsistent due to periodic debasements by the Makhzen (the state authority) to finance state expenditures, particularly military campaigns and tributes to unruly tribes. This practice eroded public trust and disrupted domestic trade, as merchants and subjects struggled with fluctuating values and a general scarcity of sound coinage.

Externally, Morocco’s currency system was under severe strain from European commercial demands. The growing volume of trade with nations like Britain, France, and Spain, which focused on exporting Moroccan agricultural goods (wheat, wool) and importing European textiles and hardware, created a chronic imbalance of payments. European merchants insisted on payment in high-quality, full-weight silver coins, leading to a continuous drain of the best Moroccan specie out of the country. This "flight of good coinage" left the domestic economy with an inferior, mixed circulation of clipped, worn, and debased coins, exacerbating internal economic difficulties.

Sultan Mohammed III (r. 1757-1790), aware of these crises, had been attempting monetary reforms in the years leading up to 1786. He centralized minting operations, established a new mint in Essaouira, and issued new copper falus to facilitate small-scale transactions. However, by 1786, these measures were still struggling against the entrenched structural problems. The fundamental tension remained: the state's fiscal needs and the relentless external demand for silver bullion consistently undermined efforts to create a stable, unified, and trustworthy monetary system for the Moroccan economy.