1 Dirham – Morocco

In 1838, the currency situation in the Moroccan Empire under Sultan Abd al-Rahman was characterized by profound monetary disarray and external pressure. The state lacked a unified, modern coinage system. Instead, circulation was a chaotic mix of disparate coins: domestically minted silver dirhams of varying and often debased purity, a plethora of older Spanish and Spanish-colonial silver coins (especially the ubiquitous piastre, or Spanish dollar), and various other European and Ottoman currencies. This fragmentation severely hampered trade and state revenue, as values fluctuated wildly based on metal content and origin, making taxation and commerce inefficient and unpredictable.

This monetary instability was exacerbated by a severe structural economic crisis. Morocco's traditional trade balances were collapsing due to increased European industrial competition, while costly military defeats (notably the Franco-Moroccan War of 1844 was looming) drained the treasury. To finance state expenditures, the Makhzen (government) increasingly resorted to debasing the silver coinage, reducing its precious metal content. This practice, while providing short-term liquidity, triggered inflation, eroded public trust in the currency, and further complicated domestic and international transactions, creating a vicious cycle of fiscal weakness.

Concurrently, European commercial and diplomatic influence was intensifying, directly impacting the monetary sphere. British and French merchants, backed by their consulates, insisted on transactions in reliable foreign silver coinage, sidelining the debased local currency. This effectively created a dual monetary system where foreign coins circulated at a premium, undermining Moroccan sovereignty. Thus, by 1838, the currency situation was not merely a financial issue but a stark symptom of a pre-modern state struggling under internal fragility and the encroaching demands of European imperial power, setting the stage for future financial crises and foreign intervention.