The circulation of cash in Morocco has reached 540 billion dirhams as of July 2026, according to the monetary statistics of Bank Al-Maghrib. This represents a significant increase, with the amount more than doubling in six and a half years. This growth highlights the persistence of cash usage in the country's economy. Several factors contribute to this trend, including the lasting impact of the pandemic, which led to a precautionary savings movement.
The weight of the informal economy, transfers from Moroccans living abroad, and a lack of trust in institutional financial channels also play a role in the increasing cash circulation. However, it is essential to note that the volume of banknotes in circulation does not directly correlate with the size of the informal economy or tax evasion. Some of the cash is hoarded and does not circulate, while another portion finances declared transactions.
The relationship between cash reserves and informality exists but is not direct or measurable in its current state. The persistence of cash usage is primarily linked to practical parameters such as accessibility and cost of electronic payment services, trust in the reliability of devices, and their acceptance by small businesses and local commerce.
These small businesses and local commerce concentrate most daily transactions. To measure the transition to electronic payments, it is necessary to compare the evolution of cash reserves with that of electronic payments over time, rather than solely examining the current cash circulation. Available data show a rapid growth in card and mobile payments, but this growth starts from a weak base and has not yet reversed the trend of increasing cash circulation.
The issue at hand goes beyond modernizing payment methods, as it affects the tax base, banking inclusion, and the effectiveness of monetary policy. The channels of monetary policy transmission weaken as the proportion of the economy conducted outside the banking system expands. This situation underscores the need for strategies to promote electronic payments and enhance financial inclusion.
The growth of electronic payments is crucial for improving the efficiency of monetary policy and increasing the tax base. While cash circulation has grown significantly, the development of electronic payment systems is essential for reducing the reliance on cash and promoting financial inclusion. This, in turn, can lead to a more efficient and transparent economy.
In conclusion, the doubling of cash circulation in Morocco over six and a half years highlights the need for a comprehensive approach to promote electronic payments and enhance financial inclusion. By addressing the factors contributing to the persistence of cash usage and investing in electronic payment systems, Morocco can work towards a more efficient and transparent economy.
Key points
- Cash circulation in Morocco has more than doubled in six and a half years, reaching 540 billion dirhams as of July 2026.
- The persistence of cash usage is linked to factors such as the pandemic's impact, the informal economy, and a lack of trust in institutional financial channels.
- Promoting electronic payments and enhancing financial inclusion are crucial for improving the efficiency of monetary policy and increasing the tax base.
