Of COURSE you need cash. That's what ATMs are for. I arrived with none, got cash at the airport, no problem.

When I was in Morocco Euros were taken about everywhere. I was even given Euros back as change in shops when I paid in the Moroccan currency (which I obtained at the exchange at the airport). I suspect that pounds and dollars won't be turned down.

Yes, but what exchange rate did you get???

ATMs are everywhere in Morocco. Euros are always welcome as well.