1 Dirham – Morocco

In 1874, Morocco's currency situation was characterized by profound instability and complexity, a direct reflection of the country's political and economic fragility. The monetary system was a chaotic mix of domestic and foreign coins. Domestically, the primary silver coin was the dirham, but its weight and purity were not standardized, leading to countless local variations. Alongside these, a plethora of foreign coins circulated freely, most notably the Spanish duro (5 peseta piece), the British sovereign, and the French 5-franc piece. This multiplicity created a confusing exchange environment where merchants and money changers (sarrāfs) wielded significant power, determining exchange rates daily and often to the detriment of the common people and foreign traders.

The root of this monetary disorder lay in the Alawite dynasty's severe financial distress. The Moroccan Makhzen (government) was crippled by debt, following a costly war with Spain (1859-60) and massive indemnities paid to foreign powers. To raise revenue, the state had resorted to debasing the silver coinage by reducing its silver content, a practice that eroded trust and fueled inflation. Furthermore, European economic pressure was intensifying; commercial treaties imposed after military defeats granted foreign subjects extraterritorial rights and fixed low import tariffs, leading to a flood of European goods and a drain of silver bullion to pay for them. This trade imbalance exacerbated the shortage of sound currency.

Consequently, 1874 fell within a protracted period of monetary crisis that underscored Morocco's diminishing sovereignty. The inability of the Makhzen to control its own currency was a glaring symptom of its weakness in the face of European imperial and financial encroachment. This chaotic system would persist until the early 20th century, ultimately becoming a key justification for the establishment of the French and Spanish protectorates, which would impose modern, unified currency systems as part of their colonial administration.