The convertible dirham account: a repatriation guide for the diaspora

Before "what will it earn?", an investor living abroad asks a different question: "will I be able to get my money back out?" In Morocco, the answer depends less on the project than on how the money entered the country. The convertible dirham account is the tool that makes that entry traceable.

Key points

• Moroccan banks can open foreign-currency accounts and convertible dirham accounts for Moroccans living abroad, and these accounts must never go overdrawn (Office des Changes).
• Income and sale proceeds from an investment funded in foreign currency can be transferred freely (general foreign-exchange instruction, art. 171).
• The 2022 investment charter guarantees Moroccans abroad who invest in foreign currency the transfer of their after-tax profits with no limit on amount or duration (Framework Law 03-22, art. 31).

What is a convertible dirham account?

It's an account held in dirhams at a Moroccan bank, funded with foreign currency, whose balance can be converted back into foreign currency and sent abroad. The Office des Changes, Morocco's foreign-exchange regulator, allows banks to open this type of account, as well as foreign-currency accounts, for Moroccans living abroad among others (Office des Changes).

Its purpose is traceability. Every dirham in it comes from an identifiable foreign-currency transaction. That's what lets you show, when the time comes, that the money is entitled to leave.

One rule applies without exception: these accounts must not run a debit balance. No overdraft, not even for a few days.

Foreign-currency or convertible dirham account: what's the difference?

The difference is the currency the balance is held in. A foreign-currency account keeps euros, dollars or pounds. A convertible dirham account keeps dirhams, converted on the way in, while retaining the right to convert them back. Both fall under the same Office des Changes text and follow the same credit and debit rules.

The choice is mostly practical. If you regularly pay expenses in Morocco, the convertible dirham account avoids repeated conversions. If you're holding savings for a future project, the foreign-currency account lets you choose when to convert.

What can go in, and what can come out?

On the credit side, the Office des Changes allows transfers received from abroad and interest earned on deposits, among others. Foreign banknotes are accepted if accompanied by an import declaration dated within the last six months or an exchange slip less than a month old (Office des Changes).

On the debit side, the account can be used for any payment in Morocco or abroad, and to open term deposits.

Above all, remember the cash constraint. Euros brought over on a trip and deposited without a recent import declaration can't be paid into this account. It's the most common mistake, and a hard one to fix afterwards.

Practical conditions (documents, fees, remote opening) vary from bank to bank. Ask for them in writing before you choose.

How do you invest in Morocco and keep the right to repatriate?

The principle fits in one sentence: an investment funded in foreign currency carries the right to transfer its income and sale proceeds freely. The general foreign-exchange instruction guarantees full freedom to transfer income, sale or liquidation proceeds and repayments of shareholder advances for investments funded in foreign currency (Office des Changes, art. 171).

For Moroccans abroad, Framework Law 03-22, the investment charter, adds a guarantee at the level of statute. Those who fund their investments in foreign currency benefit from a convertibility regime covering the transfer of after-tax profits, with no limit on amount or duration, and of sale or liquidation proceeds, capital gains included (Investment Charter, 2022, art. 31).

In practice, the safest route has three steps: a transfer from your bank abroad, a credit to a foreign-currency or convertible dirham account, then the contribution to the project from that account. Each step leaves a bank record. Together they form the proof you'll need in five or ten years.

Which income can be repatriated?

The Office des Changes defines investment income broadly. Its list covers dividends and profit shares, branch profits, rental income, interest on loans between related companies and on shareholder current accounts, interest on debt securities and interest on term deposits (Office des Changes, art. 160).

That list informs a choice of structure. An equity stake earns dividends, paid only if the company makes a profit and decides to distribute it. A shareholder current account or a loan earns interest on an agreed schedule.

Both can be repatriated. They still don't carry the same risk, nor the same expectations from the owner.

Which mistakes make repatriation harder?

Problems at the moment of taking money out almost always start much earlier. Four come up again and again.

Bringing cash without a declaration. Without a recent import declaration or exchange slip, the foreign-currency origin of the funds isn't established.

Having a resident relative pay. A family member who covers your share from their Moroccan account while waiting for your transfer strips the contribution of proof that it was funded in foreign currency.

Mixing uses. One account for family expenses and the investment makes tracing tedious. A dedicated project account costs little and simplifies everything.

Writing nothing down. A contribution with no deed (articles of association, minutes of a capital increase, current-account agreement) will be hard to have recognised as an investment. Without paper, it's just a transfer.

How do you choose a project whose money flows are traceable?

A serious project makes this work easier, not harder. Before committing funds, ask the owner three things: the account that will receive your contribution, the deed that will record it, and how dividends or interest will be paid.

An owner who answers clearly usually keeps a tidy file, and that's one of the things file completeness measures in the trust score of portal projects. If you're setting up your own structure, our guide to starting a company in Morocco from abroad walks through these steps in order.

If you're also eyeing public incentives, note that this convertibility guarantee is, for most diaspora projects, the charter's most concrete benefit. We explain why in our article on the investment charter's incentives for the diaspora. For the wider context, see investing in Morocco from abroad.

This article is for information. Foreign-exchange rules change: check the conditions in force with your bank or the Office des Changes before any transaction.