10 Centimes – Morocco

In 2011, Morocco's currency situation was characterized by a stable but carefully managed exchange rate regime, set against a backdrop of regional political upheaval and domestic economic pressures. The Moroccan dirham (MAD) operated under a fixed peg to a currency basket, weighted approximately 60% to the euro and 40% to the US dollar. This policy, administered by Bank Al-Maghrib (the central bank), provided stability for trade and investment but limited monetary policy autonomy. While the Arab Spring protests that year led to significant political reforms in Morocco, they did not trigger a currency crisis, largely due to the country's relative political stability, proactive social reforms by the monarchy, and robust foreign exchange reserves that cushioned against speculative pressures.

Economically, the year presented challenges that tested this stability. Soaring global prices for food and energy, which Morocco imports heavily, widened the trade and current account deficits. This increased demand for foreign currency put gradual depreciation pressure on the dirham. Furthermore, the economic downturn in the Eurozone—Morocco's primary trading partner and source of tourism revenue, foreign direct investment, and remittances—dampened crucial inflows of foreign exchange. Despite these pressures, Bank Al-Maghrib successfully maintained the peg, utilizing its reserves to intervene in the market and defend the agreed-upon exchange rate band.

Overall, 2011 was a year where Morocco's currency regime demonstrated resilience. The fixed peg was maintained without drastic devaluation, which helped control inflation and preserve economic confidence during a turbulent period. However, the underlying pressures highlighted the dirham's vulnerability to external shocks and set the stage for future policy debates. These discussions would eventually lead, years later, to a move towards a more flexible exchange rate system to better absorb such shocks and strengthen the competitiveness of the Moroccan economy.