CASABLANCA — Despite the widespread adoption of bank cards, mobile wallets, and administrative digital services, cash continues to tighten its grip on the Moroccan economy.
According to Bank Al-Maghrib’s latest annual report, the volume of physical currency in circulation soared by 18.5% in 2025, reaching a historic peak of 491 billion dirhams. This surge places Morocco’s cash-to-GDP ratio at 28.5%, a figure the central bank highlights as one of the highest in the world.
This dramatic acceleration caught monetary authorities off guard. Between 2010 and 2019, cash holdings grew at a steady annual average of 6.2%. The pandemic era saw that rate climb to 10.6% as citizens hoarded cash for precautionary reasons. Following a brief slowdown to 5.2% in 2024, driven by a voluntary tax regularization program, Bank Al-Maghrib anticipated a gradual return to pre-pandemic baselines. Instead, the economy experienced a sharp upward spike.
Central bank analysts attribute this unexpected surge to a confluence of economic factors in 2025. Stronger national economic growth, coupled with a massive influx of tourism revenue—boosted toward the end of the year by the Africa Cup of Nations—fueled high demand for physical currency. Additionally, the government’s rollout of direct financial aid to livestock farmers for herd restocking injected substantial liquidity directly into cash-reliant agricultural communities.
Beyond immediate economic catalysts, structural behaviors keep banknotes entrenched in daily life. Key economic sectors, including retail trade, construction, public works, and several liberal professions, continue to operate predominantly on cash transactions. Furthermore, persistent economic uncertainty drives individuals to hold physical banknotes as a store of value, reinforcing a widespread culture of hoarding.
The persistent expansion of the informal economy remains another primary driver. Bank Al-Maghrib estimates that informal activities accounted for an average of 34% of Morocco’s GDP between 2021 and 2023, up from roughly 30% in the preceding decade. Central bank officials also point to harder-to-measure factors, including tax evasion, illicit financial flows, and unregulated commerce, as major contributors to the demand for untraceable physical money.
The dominance of cash stands in sharp contrast to Morocco’s steady progress in financial inclusion. By 2024, banking penetration had reached 58% among adults, up from 53% in 2020. The nation now boasts 22.6 million bank cards and 13.7 million registered mobile wallets, alongside ongoing government efforts to digitize social aid payments and local taxes. However, the presence of digital infrastructure has not yet translated into a shift away from cash usage.
This reliance on paper currency carries significant systemic costs. Bank Al-Maghrib cautions that managing, producing, and securely distributing physical banknotes places a heavy financial burden on the financial system, while simultaneously heightening risks related to theft, tax fraud, and underground financial operations.
To reverse this trend, the central bank advocates for a series of targeted measures. Key recommendations include expanding banking access in rural areas, fully digitizing social security benefits, and equipping small merchants with lower-cost payment terminals. Monetary authorities are also calling for the widespread adoption of electronic invoicing, the capping of interchange fees at 0.65%, and the deployment of a unified, instant payment platform built around interoperable QR codes to make digital transactions as fast and accessible as cash.
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