The volume of cash in the Moroccan markets currently exceeds 430 billion dirhams, equivalent to about 30 percent of the Gross Domestic Product (GDP), a ratio that is considered according to Bank Al-Maghrib Governor Abdellatif Jouahri “among the highest in the world”.
The Governor spoke on Tuesday, June 25, 2024, at a press conference following the meeting of the Bank Al-Maghrib Board, where he expressed his concerns about the rising cash circulation.
To reduce this phenomenon, Jouahri explained that a committee chaired by Bank Al-Maghrib has been established, which includes banks, relevant ministries, and researchers, to analyze the reasons for the high cash circulation in Morocco and to propose solutions.
According to the governor, one of the tasks of the newly established committee is to audit the available financial data to raise citizens’ awareness of the issue of cash usage, preparing Moroccan citizens to replace cash with digital means as it would spare Morocco many problems and difficulties.
Jouahri spoke about enacting laws that mandate digital means for financial transactions, following the steps of many countries worldwide, the governor highlighted the Chinese experience in this regard, where digital transaction methods have become mandatory for all financial dealings, prioritising surveillance as Jouahri added that cash is the best way to finance money laundering and terrorism due to the limits in tracking the source of these funds.
It’s worth noting that they were speculation that Bank Al-Maghrib would start canceling some banknotes and introducing others to curb the phenomenon, however, Jouahri denied this, as the bank would be obliged to meet the current demand for cash regardless of the nature of the banknotes.
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