1 Falus – Morocco

In 1806, Morocco's currency situation was characterized by a complex and often unstable bimetallic system, heavily influenced by both internal governance and intense foreign commercial pressure. The country circulated a variety of coins: the silver dirham and the gold benduqi were the primary Islamic denominations, but a plethora of older, worn Spanish reales (pieces of eight), Portuguese cruzados, and other European coins circulated widely, especially in port cities. This created a chaotic exchange environment where the value of coins depended not only on their metal content but also on their origin, age, and the fluctuating market rates set by money changers (sarrafs).

The Alawite Sultan Moulay Slimane, who ruled from 1792 to 1822, faced significant challenges in asserting monetary sovereignty. His attempts to mint new, pure dirhams to standardize the currency were undermined by the persistent outflow of full-weight silver and gold coins to Europe in exchange for manufactured goods. This led to a chronic shortage of sound money, while debased and clipped coins remained in domestic circulation, eroding public trust. Furthermore, the Sultan's conservative fiscal policies and reduced engagement in foreign trade, partly due to religious ideology and internal tribal rebellions, limited the state's ability to inject new bullion into the economy.

Consequently, the monetary landscape of 1806 was one of fragmentation and vulnerability. The coexistence of official Islamic coinage, worn European specie, and the constant pressure of arbitrage by European merchants created an economy prone to inflation and exchange rate volatility. This instability reflected Morocco's broader geopolitical position at the time—formally independent but increasingly penetrated by European economic interests, which would later culminate in severe financial crises and foreign intervention in the 19th century.