Morocco’s tax amnesty program slows cash circulation growth in 2024

Friday 01 August 2025 - 09:50

Morocco’s tax amnesty program significantly slowed the growth of cash in circulation in 2024, according to Bank Al-Maghrib’s (BAM) annual financial report. The initiative, launched by the General Directorate of Taxes, reduced the growth rate of banknotes and coins in circulation to 8%, down from 11% in 2023.

Slower growth but continued rise in cash circulation

Despite the deceleration, the total volume of cash in circulation continued to grow, increasing from MAD 412.7 billion ($45.16 billion) at the end of 2023 to MAD 444.3 billion ($48.62 billion) by late 2024. BAM Governor Abdellatif Jouahri presented the report to King Mohammed VI, emphasizing that the upward trend in cash demand persisted throughout the year.

The highest levels of cash circulation were recorded during the second half of 2024, peaking in August at MAD 446 billion ($48.86 billion). Seasonal demand patterns, driven by Eid Al-Adha celebrations, summer holidays, the return of Moroccans living abroad, and the back-to-school season, contributed to this surge. By contrast, the lowest levels were observed in November at MAD 412 billion ($45.14 billion).

Economic challenges of cash reliance

The continued rise in cash circulation presents several economic concerns, including reduced financial transparency, increased tax evasion, and the growth of undeclared economic activities. These issues weaken the effectiveness of monetary policy and highlight the need for greater reliance on electronic payment systems.

Bank Al-Maghrib has urged citizens and merchants to transition to digital payment methods to address these challenges and improve financial inclusion.

Tax amnesty program’s success

The voluntary tax settlement initiative, which ran from January to December 2024, encouraged individuals to declare previously undeclared assets. Government Spokesperson Mustapha Baitas praised the operation, revealing that it generated MAD 127 billion ($12.7 billion) in declared assets and contributed MAD 6 billion ($600 million) directly to the state treasury.

The program is part of Morocco’s broader strategy to formalize its economy and reduce the dominance of cash transactions, which have long been a feature of significant portions of its economic activity.