According to recent data published by Bank Al-Maghrib, statistics published at the end of last February indicate a circulation of liquidity of 358.3 billion dirhams, or more than 35 billion dollars, up 0.4% a month earlier. , and 11.4% compared to February 2022.
The reasons for the spread of “cash”
A simple visit to Moroccan markets and shops, whether in villages or towns, reveals the widespread use of money for performance. There are hardly any electronic payment devices, except in supermarkets, gas stations and some shops. As for the popular merchants and craftsmen of the market, most of them deal with “cash”.
Bank Al-Maghrib attributes the acceleration in the circulation of cash to several factors, in particular “the growing uncertainty, which is pushing depositors to make huge withdrawals of banknotes as a precaution, a situation that has been observed in the Kingdom during the Covid-19 crisis”. in the year 2020, when the demand for banknotes, in one year, an increase of 20 percent.”
According to the same source, “the informal economy, which is an essential component of the economy in low-income or emerging countries, can be a source of continued demand for liquidity. Even in the economic literature, this is considered one of the main indirect measures of parallel economic activities.
Taxation is an “urgent necessity”
In this regard, the economist Rachid Sari estimated that “the imposition of a tax on cash transactions has become an absolute necessity, especially after Morocco’s exit from the gray list of money laundering and terrorism, because suspicious transactions are hidden in hard-to-trace monetary performances”. and monitor, and circulation circulation Cash also contributes to the exacerbation of the informal economy.
Despite efforts to curb the spread of cash transactions, by offering digital payment solutions via mobile phone, they have not been able to curb securities trading. The spokesperson pointed out that the Central Bank and its partners launched a set of digital means to facilitate performance, especially during the Corona pandemic, but the results were counterproductive and the money supply continued to grow.
Big loss for the economy
Sari pointed out in a statement to “Sky News Arabia” that the increase in monetary circulation in the current global economic situation and rising inflation rates negatively affect the country’s economy and undermine the Bank’s efforts. central government, which may lead to interest rates rising again.
He stressed that the imposition of a tax on the circulation of cash comes at the right time and would put an end to the rentier economy and suspicious transactions, in addition to strengthening the strength of the economy, which is undergoing significant losses due to tax evasion associated with the use of cash. .
It should be noted that the bank liquidity deficit in Morocco worsened to 80.9 billion dirhams on average during the year 2022, against 70.8 billion dirhams in 2021.
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