1 Dirham – Morocco

In 1840, Morocco's currency situation was characterized by a complex and fragmented system, reflecting the country's political decentralization and its integration into both Mediterranean and trans-Saharan trade networks. The official currency was the silver dirham, but its value and purity varied significantly between regions and even cities, as local authorities and powerful tribal leaders often minted their own coins. Alongside these, a multitude of foreign currencies circulated freely, most notably the Spanish silver real (piece of eight), the British gold sovereign, and various Ottoman and French coins, which were essential for international commerce.

This monetary heterogeneity created chronic instability and practical difficulties for trade. The lack of a standardized national currency meant exchange rates fluctuated constantly, complicating taxation and state finances for the 'Alawite dynasty under Sultan Abd al-Rahman. Furthermore, the outflow of silver to Europe in exchange for manufactured goods led to periodic shortages, debasement of local coinage, and inflation. The state's limited control over the money supply was a clear symptom of the Makhzen's (central government) weakening authority over the provinces and its struggling economy.

The situation was further strained by growing European economic and diplomatic pressure. By 1840, following military defeats like the Franco-Moroccan War of 1844, Morocco was being drawn into an unequal trade relationship with European powers. This would soon lead to commercial treaties, like the 1856 Anglo-Moroccan agreement, which fixed exchange rates favorably to foreign merchants and accelerated the inflow of European goods, undermining local industries and exacerbating the silver drain. Thus, the currency chaos of 1840 was a precursor to the deeper financial crises and loss of monetary sovereignty that would mark the latter half of the 19th century.