You ask a very good question, which we always encounter with our travelers coming to Morocco.
Morocco’s official currency is the dirham (MAD abbreviated to dh), divided into 100 centimes. Coins are issued in denominations of 1dh, 2dh, 5dh, and 10dh, as well as 10, 20, and 50 centimes. Banknotes are issued in denominations of 20, 50, 100, and 200. As the dirham is a restricted currency and isn’t traded internationally, there is no black market and exchange rates vary only marginally between banks, bureaux de change and even most hotels. There is no need to acquire Moroccan dirham prior to your departure. While Morocco is still very much a cash society, ATMs are prevalent throughout the country and cards bearing the Cirrus, Plus, and Maestro symbols are generally accepted by all banks. However some of our previous clients have experienced great frustration by having their card/s constantly rejected by some or all ATMs throughout the country. We strongly advise you don’t entirely rely upon accessing your travel funds via an ATM - bring along some foreign exchange as a ‘Plan B’. Though most Western-style supermarkets, upmarket restaurants, quality accommodations and some tourist-friendly shops will have the necessary equipment for payment by credit card, cash is generally still the preferred form of payment when paying for smaller purchases. When it is possible to pay by credit card for goods and services, MasterCard and Visa are accepted, but rarely American Express. Changing money at a bureau de change is quicker than at banks, although some banks do have dedicated booths just for money exchange. It has become quite difficult to exchange traveler’s checks nowadays, and we recommend just bringing along notes. The euro is by far the easiest foreign currency to exchange and is sometimes accepted as payment if you don’t have any dirham on hand. US dollars and British pounds can be exchanged at banks and bureaux de change, but will rarely be directly accepted as payment. As a general rule, make sure your foreign currency notes are in good condition. Specifically with US dollar notes, try to bring along notes that are dated post-2000. Scottish pounds and both Australian and New Zealand dollars are generally not exchangeable in Morocco.There is always a problem making change in Morocco, and it is often difficult to pay with large banknotes. Always be on the lookout for smaller denomination bank notes (10 and 20) and dirham coins as this will make your life easier when paying for inexpensive everyday goods such as bottled water. Moroccan dirham can be exchanged back into hard currency (usually euros or US dollars) at Casablanca or Marrakech airports. You may be asked for an exchange receipt or an ATM withdrawal slip, so keep a few handy along your travels. Duty free shops past the immigration counters generally do not accept dirham, though you can usually buy a sandwich or a drink in the local currency.