The Wali of Bank Al-Maghrib (BAM), Abdellatif Jouahri, expressed his concern about the volume of cash in circulation, emphasizing the importance of addressing the factors that contribute to this increase.
During a press conference following the BAM’s board meeting on March 19, Jouahri explained that the increase of cash in circulation was previously between 6 to 7%, while today it ranges between 11 and 12%, as efforts are invested into adopting digital means to carry out transactions that are currently made in cash.
This concern is due to the increase of cash in circulation by 130% over the past ten years to stand at MAD 393 billion at the end of 2023, a growth that exceeds the evolution of term deposits which increased by 101% during the same period.
In this regard, Jouahri affirmed that the BAM is conducting an extensive investigation into the factors that encourage the use of cash and the rejection of digital means, adding that the reason could be linked to the prevalence of the informal sector and the fear of taxation.
Jouahri also stressed the importance of modernizing payment systems to cope with the increase in the volume of cash transactions in Morocco, emphasizing the need for a “culture change” through several measures, including the use of remote banking services to accelerate the widespread use of this technology.
