Morocco’s Central Bank Forms Committee to Tackle Cash Circulation Surge

Rabat – Morocco’s central bank (BAM) has established a high-level committee to address the issue of the high volume of cash in circulation.

During a press conference on Tuesday, Governor Abdellatif Jouahri emphasized the urgency of the situation, highlighting that the amount of cash in circulation has soared to approximately MAD 430 billion, constituting nearly 30% of the country’s GDP—one of the highest rates globally.

As of 2022, Morocco topped the list of the world’s 20 countries most reliant on cash, with 74% of transactions in the North African country being cash-based, according to estimates.

“This is unacceptable,” Jouahri declared. “What matters to us now is the problem of cash in Morocco. We cannot continue in this direction.”

The newly formed committee, presided over by the central bank, includes representatives from banks, the finance ministry, and academic researchers.

Their mandate is to produce a comprehensive report that not only analyzes the underlying causes of the cash surplus but also recommends actionable solutions to mitigate the problem.

Jouahri pointed out that Morocco is lagging behind other nations in modernizing its financial transactions.

“It is inconceivable that at a time when countries like Kenya or Jordan have advanced in these matters, we are still struggling,” he said. “I’m not talking about India or China,” he continued. “In China now, if you go to buy anything, there is no cash. You have a card code that you use, and that’s it, you pay what you want and go.”

He stressed the importance of adopting a moderate yet committed approach to reducing cash dependency and promoting digital transactions. “We need to take a reasonable approach, a gradual approach.”

Part of the strategy will involve fostering a cultural shift towards embracing digital banking, with a particular focus on inclusivity. “We should also promote a certain type of culture,” Jouahri added. “The approach should include citizens and especially vulnerable populations who should gain access to banking services.”

Despite institutional efforts, a large portion of Morocco’s population remains unbanked or underbanked, further hindering the country’s aspiration to reduce reliance on cash. A 2022 report from the World Bank showed that only 44% of Morocco’s adult population have bank accounts.

The study further indicated that bank account ownership declined significantly among Morocco’s poor adult population, averaging 34%. Bank account ownership is especially low among the country’s female population, with only 33% of Moroccan women owning bank accounts, according to the survey.