2 Falus – Morocco

In 1830, Morocco's currency system reflected a traditional, pre-modern economy largely isolated from the European financial revolutions of the time. The primary circulating coins were silver dirhams and gold benduqi (ducats), minted by the royal authority, the Makhzen, in cities like Fez and Marrakech. However, the system was highly fragmented and unstable. A plethora of older, worn, and foreign coins—particularly Spanish silver reales (pieces of eight) and Ottoman coins—circulated alongside domestic issues, leading to complex and fluctuating exchange rates that varied by region and the weight and purity of the metal.

This monetary disarray was exacerbated by severe fiscal pressures on the Makhzen. Sultan Abd al-Rahman (r. 1822–1859) faced mounting expenses from maintaining a large military, costly tribal pacification campaigns, and the aftermath of a disastrous war with France at the Battle of Isly (1844). To raise revenue, the state frequently resorted to debasement—reducing the silver content in newly minted dirhams. This practice, while providing short-term liquidity, triggered inflation, eroded public trust in the currency, and encouraged hoarding of full-weight coins, further destabilizing the economy.

Consequently, by 1830, Morocco stood at a monetary crossroads. The internal weaknesses of its bullion-based system were becoming acute, just as European commercial and political influence was intensifying along the coast. The year 1830 itself was a pivotal one, marked by the French invasion of neighboring Algeria, an event that would soon bring profound geopolitical and economic shockwaves to the region. While not yet under colonial rule, Morocco's archaic currency system was ill-prepared for the coming century of foreign pressure and integration into the global capitalist economy, setting the stage for future financial crises and reforms.