Morocco: towards the end of cash?

The year marks a statistical break in the relationship with banknotes. While the money supply continues to grow (+8%), the pace is significantly lower than the previous peaks of 10% or 11%. This deceleration is mainly due to an atypical December. The tax regularization operation has led to a massive return of liquidity to the counters, recording record deposits of 20.6 billion dirhams that have absorbed a significant portion of dormant money.

Despite this slowdown, the national economy remains heavily dependent on cash, with a cash/GDP ratio of 29%, well above the pre-pandemic level. Demand remains dictated by seasonal events such as Eid Al-Adha or summer. In wallets, the 200 dirham banknote dominates everything else, accounting for three-quarters of the total value in circulation.

However, this report from Bank Al-Maghrib identifies the signals of a structural change. The rise of instant transfers and mobile payments is starting to weigh in the balance. While cash retains its immediate supremacy, the modernization of payment infrastructures is leading the Kingdom towards a gradual rebalancing in favor of digital transactions.