David had done some research before his first trip to Morocco. He knew the currency was the Moroccan dirham, he knew ATMs were available in the major cities, and he knew that haggling was part of daily life in the souks. What he didn't know was how to tell real dirhams from fake ones.
That gap in knowledge cost him about $65, and nearly caused a much bigger problem.
The Setup: A Convenient Exchange
David arrived in Marrakech with euros and planned to exchange cash for dirhams at the airport. But after a delayed flight and a long immigration line, he walked past the exchange counters without stopping. His riad host had mentioned that exchanging money in the medina was easy, so he figured he'd handle it there.
The next morning, walking through the Jemaa el-Fna area toward the souks, he noticed several men standing near the entrances to narrow alleys, quietly offering to exchange money. One of them held a small calculator and a stack of dirham bills. The rate he offered was noticeably better than what David had seen posted at the airport.
David exchanged 100 euros and received a thick stack of 20 and 50 dirham notes. The math checked out on the calculator. He counted the bills, thanked the man, and walked into the souk to start shopping.
The Problem: Rejected at the Register
The first sign of trouble came at a leather goods shop near the tanneries. David picked out a bag, agreed on a price of 250 dirhams, and handed over the bills. The shopkeeper held one of the 50-dirham notes up to the light, frowned, and handed it back. He said something in Arabic to another merchant nearby, then turned to David and said in English: "This one is no good."
David tried a different 50-dirham note. Same reaction. The shopkeeper pointed to a faint difference in the coloring and the feel of the paper. He told David the bills were counterfeit.
Out of the stack David had received that morning, four of the 50-dirham notes and three of the 20-dirham notes turned out to be fakes. That was 260 dirhams, roughly $25. But the real problem was bigger: David had already broken a fake 50 at a small food stall without realizing it, and he had no way to know how many other questionable bills he'd already spent or received back as change.
By the end of the day, after checking his remaining cash more carefully at the riad, he estimated the total loss at around 650 dirhams (about $65).
Why This Happens in Morocco
Morocco is a cash-heavy country, especially in the medinas and souks. Most small vendors, taxi drivers, and market stalls deal exclusively in cash. That creates strong demand for currency exchange, and where there's demand, informal exchangers show up.
Most informal exchangers in Morocco are honest. They make their money on the spread between buy and sell rates, just like a bank or exchange office. But unlike licensed bureaux de change, they operate without oversight. There is no receipt, no recourse, and no way to trace the transaction if something goes wrong.
Counterfeit dirhams do circulate in Morocco, particularly older or lower-denomination notes. The 20 and 50 dirham bills are the most commonly faked because they change hands frequently in small transactions where people are less likely to inspect them closely.
Why Informal Exchangers Are Risky
Unlike licensed exchange offices, informal street changers have no accountability. If you receive counterfeit bills, there is no receipt and no way to get your money back. The better rate they offer is the bait.
How to Spot Fake Dirham Bills
Moroccan dirham banknotes have several security features that are difficult to replicate. Knowing what to look for takes about 30 seconds per bill and can save you from accepting fakes.
Feel the paper. Genuine dirham bills are printed on polymer or high-quality cotton-blend paper (depending on the denomination and series). They have a distinct crispness and texture. Counterfeits often feel smoother, thinner, or slightly waxy.
Check the watermark. Hold the bill up to a light source. Genuine notes show a clear watermark portrait that is part of the paper itself, not printed on the surface. If the watermark looks printed or blurry, the bill is likely fake.
Look for the security thread. A thin metallic or colored strip runs through genuine bills. It should be embedded in the paper, not glued on top. Tilt the bill and watch for the thread to catch the light.
Inspect the color-shifting ink. On higher-denomination notes (100 and 200 dirhams), certain printed elements change color when you tilt the bill. This is extremely hard to replicate and is the fastest way to verify a larger bill.
Compare bills side by side. If you have multiple notes of the same denomination, hold them together. Differences in color, size, or print quality become obvious when you compare directly.
How to Exchange Money Safely in Morocco
The safest option is to skip informal exchangers entirely and use one of these methods instead.
Bank ATMs are widely available in Marrakech, Fes, Casablanca, and other cities. Machines at major Moroccan banks like Attijariwafa, BMCE (Bank of Africa), and Banque Populaire give you real dirhams at the interbank rate. You'll pay a small ATM fee (typically 20-30 dirhams per withdrawal), but the bills are guaranteed genuine. Our Morocco ATM and Currency Guide covers which banks to use and which to avoid.
Licensed bureaux de change are the next best option. Look for official exchange offices with posted rates, printed receipts, and a visible license. They are common near major tourist areas, airports, and train stations. Their rates are slightly worse than the interbank rate but still reasonable, and you can inspect the bills before leaving the counter.
Hotel front desks sometimes offer exchange, though the rate is usually poor. Still, the bills will be genuine, and it is a safe option if you need a small amount of cash quickly.
Best Practice for Morocco
Withdraw dirhams from a bank ATM when you arrive. Use a travel debit card with no foreign transaction fees to keep costs low. Carry small bills for the souks and keep larger denominations for hotels and restaurants where card payment is accepted.
What David Would Do Differently
Looking back, David says the biggest mistake wasn't using an informal exchanger. It was not knowing what real dirhams look or feel like. He had never handled the currency before, so he had no baseline for comparison. The counterfeit bills didn't look obviously wrong to someone seeing dirhams for the first time.
His advice to other travelers: withdraw a small amount from a bank ATM first, even just 200 dirhams. Study what the bills look and feel like. That gives you a reference point for every transaction that follows, whether you're getting change at a restaurant or buying something in the souk.
He also recommends keeping larger purchases on a credit card whenever possible, using a card with no foreign transaction fees. The fewer cash transactions you make, the less exposure you have to counterfeit bills.
Bottom Line
Morocco is a fantastic travel destination, and most currency transactions go smoothly. But it is a cash-heavy country where counterfeit bills do circulate, especially in tourist areas with high volumes of small transactions.
The simplest way to protect yourself is to get your dirhams from a bank ATM, learn what the bills look and feel like, and avoid informal street exchangers no matter how good the rate looks.
For the full breakdown on ATMs, banks, fees, and exchange tips in Morocco, read our Morocco ATM and Currency Guide. If you want dirhams in hand before your trip, you can order Moroccan dirhams online for delivery at a known rate.