Cash Dominates Moroccan Economy Despite Digital Payment Growth, Central Bank Reports

According to the central bank, the Moroccan economy is much more dominated by cash, despite the evolution of scriptural payments. The significant growth of cash reached 7%, or 266 billion dirhams. The money supply increased by 4.4%, reaching 1.8 billion banknotes and 2.8 billion coins in 2019. Relating the money supply to GDP, it is around 23%. BAM notes that it is essential to compare it to other countries at the same pace of economic growth.

Regarding banknotes, the year 2019 recorded a circulation increase of 7.3% in value and 6.3% in volume, reaching 263 billion dirhams and a volume of 1.8 billion banknotes. The 200 DH banknotes reached 52% and the 100 DH banknotes fell to 36%. The 200 DH banknotes occupy 73% of the amount of banknotes in circulation. The 50 DH and 20 DH banknotes stabilized at 4% and 7%. Metal coins increased by 5% to reach 2.8 billion units, or 3.6 billion dirhams at the end of 2019. The 1 DH, ½ DH, 20C and 10C coins, as usual, dominate the circulation of coins.

The same document indicates that counterfeit banknotes increased by 5.5% in 2019 to reach 9,575 banknotes, with a value of 1.5 million dirhams against 1.4 million dirhams in 2018. Compared to the banknotes in circulation, 5.2 banknotes are counterfeit. The rate of counterfeit banknotes is decreasing each year thanks to the control of the counterfeiting sector in Morocco. Thus, the rate is also low compared to the international level. The number of counterfeit foreign bank notes (BBE) detected has also decreased.

For scriptural payments, the distribution remained stable. Thus, the general number of scriptural payment instruments exchanged in 2019 amounts to nearly 272 million transactions, or a value of nearly 3,597 billion dirhams. Electronic payments have taken the lead over checks, which corresponds to the policy and strategic orientations of Bank Al Maghrib, aimed at developing electronic payment methods, specifies the central bank.