Casablanca – Bank Al-Maghrib (the central bank of Morocco) has highlighted a significant increase in liquidity needs among Moroccan banks, reporting a rise to an average of approximately $11.7 million weekly during the second quarter of 2024, up from about $11.5 million in the previous quarter. This surge is primarily attributed to heightened cash circulation within the economy.
Recent data indicate that liquidity demands are expected to escalate further, projecting an increase from about $11.5 million at the end of 2023 to approximately $12.4 million in 2024 and reaching about $15.1 million by 2025. In response to this rising demand, Bank Al-Maghrib has raised its interventions to around $13.2 million, including $4.6 million in seven-day advances, $5.3 million through repurchase operations, and $3.3 million in guaranteed loans aimed at supporting small and medium enterprises.
Governor of Bank Al-Maghrib, Abdelatif Jouahri emphasized that these interventions are designed to ensure banks’ liquidity and cover their financing needs, countering any narrative that suggests the central bank’s monetary policy is a barrier to investment. He pointed out that while monetary policy plays a crucial role in controlling inflation, it cannot independently resolve issues related to employment and development.
Moreover, Jouahri addressed the ongoing discourse regarding the informal sector’s role in cash circulation, refusing to attribute the rise in cash transactions solely to this sector. He indicated that a comprehensive study is underway to better understand the dynamics of cash hoarding among Moroccans.
As the need for liquidity continues to grow, Bank Al-Maghrib is committed to monitoring banks’ liquidity usage closely and ensuring that the necessary funds are available to support economic activities, particularly loans for both public and private sectors. The central bank aims to maintain balance in the economy while facilitating the transition toward digital financial solutions in the future.