Cash rules daily life in Morocco. Despite growing access to mobile payments and bank cards, most transactions still happen with physical money. From markets to taxis to small businesses, cash remains the default.
But this isn’t just about convenience or habit. Morocco’s heavy reliance on cash reveals deeper issues: trust in banks, tax avoidance, an entrenched informal economy, and slow digital adoption. At the same time, Morocco depends on hard currencies like USD and EUR to fund its global trade, pay off debt, and maintain financial stability.
This blog breaks down the real state of cash in Morocco, how it ties to foreign currency flows, the recent government effort to push cash into banks, and what to expect as the country prepares to loosen its currency peg in 2026.
1. Cash is still king in Morocco
Cash isn’t just common in Morocco – it’s the default. Whether you’re in a café, a souk, a petrol station, or a government office, physical money is expected, even when other options are technically available.
In most cafés and restaurants, card payments may be accepted, but cash is preferred. In smaller places, cards are often refused outright.
Taxis are strictly cash-only. Morocco has no legal ride-hailing apps like Uber or Bolt. Apps like Uber and InDrive are banned. Passengers hail taxis on the street, negotiate the fare, and pay in cash – no receipts, no apps, no cards.
In markets and small shops, cash is not just expected, it’s often the only option.
Around 90% of consumer transactions are still done in cash, based on consistent market reports and informal sector behaviour. This isn’t just about tradition – it’s about infrastructure, trust, and control.
Even Morocco’s ATM system shows the pressure:
ATMs frequently run out of cash, especially during peak periods like public holidays, the end of the month (when salaries are paid), and major events like Eid or Sport events.
In July 2021, there were public reports of cash shortages at ATMs across cities during Eid al-Adha, with people queueing and machines empty.
Expat and local forums often advise travellers and residents to carry cash as a backup, especially during weekends and tourist seasons.
This reliance on cash has become so normalised that even when digital payment options exist, many people still choose cash first, just to avoid delays, technical issues, or bank fees.
Cash in Morocco isn’t just accepted. It’s expected.
2. Why is cash so dominant?
Several factors keep cash at the centre of daily life in Morocco:
- Trust issues with banking systems. Many people don’t trust digital transactions or banks to act in their interest. It’s common in Morocco for professionals like doctors, lawyers, notaires and freelancers to keep large amounts of money in safes at home or at work, instead of using banks.
There’s even a saying:“hid it under the tile”, which reflects this habit of keeping cash out of sight. It’s partly about avoiding taxes, but also about fear that one day the government will question the source of their money. This mindset keeps a lot of wealth outside the formal system. High banking costs. Holding an account costs at least 20 MAD per month.
Transfers aren’t free. Sending money, especially between banks, includes stamp fees and instant transfer charges (up to 25 MAD).
Unreliable banking services. Banks like CIH often experience outages. “System taye7” (“system is down”) is so common it’s become a meme.
Bureaucratic processes. Some banks, like BMCE, require in-person visits just to update your phone number or address.
Additional banking fees. BMCE charges commissions on regular transfers that many banks process for free.
Outdated banking tools. BMCE still issues VISA Electron cards, a product that’s been deprecated globally and rejected by many international merchants.
Large informal economy. Many jobs and businesses operate outside formal structures.
Low banking access. Some people can’t access or choose to avoid the formal banking system.
Heavy use of cheques. Cheques are still common as delayed payment tools.
High currency hoarding. Around 70% of cash in circulation never makes it back into the banks.
Between poor service, high fees, and outdated systems, banks often feel more like a burden than a benefit. Cash remains the path of least resistance.
3. Digital payments are growing
Digital payments are slowly gaining ground, especially in urban areas and sectors like tourism, retail, and e‑commerce.
SMEs are adopting POS systems more often, especially in tourist zones and shopping malls
Mobile wallets and payment apps are becoming more common, though trust and awareness remain barriers
Two major players lead the infrastructure:
CMI (Centre Monétique Interbancaire) has handled most card transactions and POS terminals since 2004- effectively holding a near‑monopoly
NAPS (North Africa Payment Services) offers mobile apps, QR payments, and fintech-oriented solutions, backed by Mastercard’s partnership
In late 2024, NAPS filed a complaint with Morocco’s Competition Council accusing CMI of abusing its dominant position. In May 2025, the Council ruled against CMI, forcing it to:
Transfer merchant contracts to new acquirers
Stop signing new clients
Operate transparently as a technical platform
This is a win for NAPS and other fintech entrants. It opens the market to competition, reduces costs for merchants, and should accelerate innovation .
Still, cash remains the default, especially in informal sectors. Infrastructure is evolving fast – but behaviors change slowly.
4. Government’s December 2024 tax‑deposit drive
In December 2024, the government launched a tax‑amnesty requiring undeclared cash to be deposited in banks by 31 Dec.
Individuals paid a 5 % fee, avoiding the normal 30‑37 % fine .
Result: MAD 100 bn (~USD 10 bn) declared, including MAD 60 bn in cash flows into banks .
Treasury netted ~MAD 5 bn in extra revenue .
Banks and tax agencies opened branches on weekends to handle the rush .
This aimed to reduce cash outside banks and boost tax compliance – but it addressed symptoms, not the root causes
5. Currency regime: peg today, float in motion
Morocco’s currency, the dirham, is still pegged to a basket (60 % EUR, 40 % USD). But that system is already shifting. The government plans to move to a flexible exchange rate by 2026, and the signs are already visible.
Prices are rising across the board:
Fuel costs now nearly match European prices at the pump
Imported goods like Zara clothing are much higher- items that cost £20 in the UK are sold for 450 MAD in Morocco, which is £35–£40 at current rates
Everyday goods and services feel more expensive, especially those tied to international pricing
To many, it feels like the economy is being slowly adjusted for a coming float. Government budgets, business pricing, and supply chains all seem to be preparing for a currency with fewer controls.
My prediction: Once the float happens, the dirham could lose up to 50 % of its value. A euro that now trades for ~11 MAD could jump to 18–30 MAD, possibly overnight. That’s not guaranteed, but the risk is real – especially if markets respond sharply or confidence drops.
Morocco is already in the early stages of the float. The public just hasn’t been told directly yet.
6. Why this matters for cash
Floating may increase dirham volatility
People and SMEs may hold USD/EUR cash as a hedge
Government must manage both cash habit and growing FX uncertainty
7. Hard‑currency inflows keep the system running
Morocco needs USD/EUR to:
Pay for oil, wheat, machinery (imports)
Support FX reserves and service debt
It earns these via:
Phosphate exports (70 % of global reserves)
Car & aircraft parts
Agriculture & fisheries
Tourism
Remittances
FDI, loans & grants
EU absorbs over 60 % of Morocco’s trade.
8. Currency control: capped outflows and localised exchange
Because Bank Al‑Maghrib (BAM) controls the dirham’s exchange rate, it also controls how much foreign currency individuals can take out of the country. The current cap is 2,000 MAD per person, per trip (around £150–£180), unless special authorisation is granted.
This restriction creates several knock-on effects:
Foreign exchange companies like Eurochange struggle to stock Moroccan dirhams at their branches outside Morocco
Tourists must bring foreign currency in cash, then exchange it after arrival
This shifts currency exchange activity inside Morocco, which artificially boosts the country’s foreign currency reserves
It’s a tightly managed system that helps maintain reserves, but it comes at the cost of convenience and flexibility. It also reinforces the local reliance on physical cash.
Even if the float proceeds in 2026, I don’t expect the 2,000 MAD cap to disappear. BAM sees it as a key tool for stability. From how things look, both the restriction and the behaviour around it will likely remain in place.
9. Cash demand spikes during Africa Cup of Nations
Hosting or co-hosting AFCON drives major cash demand in Morocco. Here’s how:
ATM withdrawals surge – ATMs typically limit withdrawals to 2,000–4,000 MAD per transaction (around $200), meaning fans and tourists must queue frequently .
Local vendors and services expect cash, even for fares and street food.
Foreign exchange counters at airports and cities struggle to meet demand, as visitors need dirham on arrival.
During AFCON, tourists bring extra cash to avoid ATM hassles and FX shortages. That flood of currency through official channels indirectly boosts Morocco’s foreign-exchange reserves, and supports the cash-heavy ecosystem.
10. Denomination issues at ATMs
Even when ATMs are working, the way they dispense cash can be frustrating. Some machines give out the full 2,000 MAD withdrawal in 20 MAD notes, the equivalent of about 2 euros each. That leaves users walking away with a stack of 100 small-value notes, which is awkward to carry and inconvenient to use. It’s a small but telling sign of how outdated some aspects of the banking experience still are.
11. Gold as an alternative store of value
With inflation fears and uncertainty around the dirham’s future, more Moroccans are turning to gold. Demand for physical gold has risen sharply, driven by price increases and a sense that it offers more long-term security than holding cash. Gold is becoming a popular hedge—not just among the wealthy, but also middle-class families looking for something more stable than the bank or the dirham.
12. Foreign payment friction for global services
Moroccans who need to access international services face extra costs due to foreign payment gateway rules. A few examples:
UK visa payments must be made online, using gateways like WorldPay that only accept EUR or GBP. These platforms apply currency conversion fees, and Moroccan banks often charge additional commissions for the transaction.
Ryanair bookings also go through non-Moroccan payment systems. Users are forced to pay in foreign currencies, not dirhams, often facing higher costs because of conversion rates and gateway fees.
The lack of local currency options for global services is another reason Moroccans keep foreign cash or avoid formal systems altogether.
13. The PayPal paradox: MAD not supported
Some Moroccan banks, like CIH, offer the ability to link your account with PayPal, but there’s a catch: PayPal doesn’t support MAD as a currency. That means:
If you send 100 MAD, it gets converted by the bank into USD, minus exchange and commission fees
PayPal receives the USD amount (for example, $10)
When the recipient withdraws, PayPal converts that USD again into their local currency, often back into MAD
Throughout the process, the user is hit with double currency conversion fees and ends up sending less than expected
So while the integration looks useful on the surface, the lack of MAD support defeats the purpose. It adds cost, complexity and confusion, especially for users trying to keep things in local currency. In practice, it’s often easier and cheaper to just deal in cash or use informal methods.
The article above lays out a clear, grounded view of why Cash remains dominant and what structural issues reinforce that. It covers:
Daily reliance on cash despite digital infrastructure growth
Trust, cost, and service issues with Moroccan banks
Slow behavioural shift in digital payment adoption
Government efforts like the 2024 tax amnesty to force cash back into banks
The upcoming currency float in 2026 and how it’s already impacting prices and expectations
Foreign currency restrictions, hoarding habits, and rising interest in gold as a hedge
Broken systems for global payments, like visa fees and PayPal, that force unnecessary conversion costs
Odd but real friction like ATM denomination issues and legacy card products like VISA Electron
