Cash takes off again | L’Economiste

The circulation of cash experienced a new rebound. This is what emerges from the latest report from the central bank (Bank Al-Maghrib), ACAPS (the Insurance and Social Welfare Control Authority), and the AMMC (Moroccan Authority for Capital Markets) on financial stability. “After the lull observed in 2021, currency in circulation experienced a clear acceleration in 2022”, reads the report. This is linked in particular to the “general rise in prices, as well as the influx of foreign currencies observed since March”. In detail, withdrawals at BAM counters reached 200 billion Dirhams (USD 20 billion), which represents an increase compared to the historic peak of 179 billion Dirhams (USD 17 billion), reached in 2020, in the context of the pandemic crisis. For their part, payments totaled 165 billion dirhams, versus 151 billion in 2021 and 142 billion in 2019. Overall, these movements gave rise to net flows of 35 billion dirhams, against usual outflows standing at around 18 billion. The circulation, excluding bank holdings, reached 372 billion dirhams, up 10% year-on-year. The ratio of currency in circulation to GDP reached 27% compared to an average of 22% before the crisis. Per type of currency, the breakdown of cash circulation shows that Moroccan banknotes represent 44% in volume and increased by 9.3% in 2022, with a total of 2.5 billion banknotes, or the equivalent of 368 billion dirhams. It is the 200-dirham denomination that remains dominant, with 56%, or the equivalent in volume of 1.4 billion banknotes. This increase was made to the detriment of the 50 dirham note, the share of which fell from 4 to 3%. The 100-dirham and 20-dirhams banknotes preserved their shares at 35% and 6% respectively. Value analysis shows that banknotes continue to represent 99% of cash in circulation. The 200-dirham note represents 75%, versus 23% for the 100 dirham note and 1% for each of the 50- dirham and 20-dirham denominations. For their part, coins also recorded a rise of 3.1% in 2022, reaching 3.1 billion coins. This represents the equivalent of 4 billion dirhams. The structure of their stock was marked by an improvement of 1% for each of the contributions of the 5-dirham and half-a-dirham coins, to stand at 8% and 13% respectively. On the other hand, the share of 20-cent and 10-cent coins fell , respectively from 16 to 15% and from 19 to 18%. In value, the structure of this stock did not register any significant variations: 34% for the 10-dirham coins, 29% for the 5-dirham coins, 22% for the one-dirham coin, and 15% for the other coins.

M.A.M.