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Morocco’s temporary tax amnesty program contributed to a significant slowdown in cash circulation growth during 2024, according to Bank Al-Maghrib’s annual financial report.
The voluntary tax settlement operation for individuals, launched by the General Directorate of Taxes from January through December 2024, helped reduce the growth rate of banknotes and coins in circulation to 8% in 2024, down from 11% in 2023.
Bank Al-Maghrib (BAM) Governor Abdellatif Jouahri submitted the report to King Mohammed VI on Tuesday, revealing that cash circulation maintained its upward trajectory despite the slower growth rate.
The total volume of cash in circulation increased from MAD 412.7 billion ($ 45.16 billion) at the end of 2023 to MAD 444.3 billion ($ 48.62 billion) by late 2024.
Seasonal cash demand patterns
The report shows that banknotes and coins in circulation reached their peak during the second half of the year, starting in June. This period typically witnesses concentrated demand for cash due to various occasions, including summer holidays, Eid Al-Adha celebrations, the return of Moroccans living abroad, and the back-to-school season.
Cash circulation recorded its lowest levels in November 2024 at MAD 412 billion ($ 45.14 billion), before rising to MAD 414 billion ($ 45.31 billion) in February. The peak occurred in August at 446 billion ($ 48.86 billion), then declined to MAD 444 billion ($ 48.59 billion) by year-end.
Economic implications and concerns
The continued rise in cash circulation presents several economic challenges, including reduced financial transparency, increased tax evasion, growth in undeclared activities, and diminished effectiveness of monetary policy.
These concerns have prompted Bank Al-Maghrib to encourage citizens and merchants to adopt electronic payment methods.
Tax amnesty success
Government Spokesperson Mustapha Baitas announced in early 2025 that the temporary tax settlement operation “yielded exceptional results that significantly exceeded initial expectations.”
The program has generated MAD 127 billion ($12.7 billion) in declared assets, with direct revenue of MAD 6 billion ($600 million) for the state treasury
The tax amnesty program represents part of Morocco’s broader efforts to formalize its economy and reduce reliance on cash transactions, which have long characterized significant portions of the country’s economic activity.
