Customers continuing to withdraw large amounts of cash is confusing banks in Morocco

New data revealed the confusion of withdrawal boxes in banking agencies and contracting activities, due to the difficulties of withdrawing large amounts of banknotes “cash”, after those in charge of customers directed contractors and managers to approve transfers by check, or “instant transfers” (Virements instantanés) via the application. Bank, in order to settle their financial transactions.

Contractors reported, in identical statements to Hespress, that withdrawing cash every morning from banking agencies is a routine process for companies, especially small ones, which have a limited financial treasury, as they are still forced by suppliers and their dealers to settle their transactions in cash, due to the high risks. Payment by check, and the complexities of paying through banking applications, especially through regular transfers that take about 48 hours from one bank to another.

These customers added that the amounts required to be withdrawn in cash reach up to 100 thousand dirhams, or 10 million centimes, explaining that agency officials often use the pretext of delay in cash payments received by the agency from the main headquarters of the banking group, as well as malfunctions in the information system that make it impossible to complete withdrawals using cashier’s checks. (les chèques de caisse), or transfers from one account to another, instantaneous or regular.

The confusion in managing requests for cash notes coincided with the worsening bank liquidity deficit to 159.2 billion dirhams, an increase of 1.31 percent, during the period between April 10 and April 17, according to what was confirmed by the Business Bank “BMCE Capital Global Research.” Explaining that this situation forced Bank Al-Maghrib to raise its advances for 7 days to 46.7 billion dirhams, with expectations that the value of these advances will rise to 49.9 billion dirhams during the coming period.

For his part, a banking source, who requested anonymity, confirmed that the demand for banknotes continued to increase during and after Ramadan, which put strong pressure on banking agencies and automatic windows, which during the last Eid al-Fitr occasion required them to be filled with sufficient reserves in order to cover the demand. Stressing that cash transactions by small businesses and merchants have increased the pressure on liquidity.

The same source added, in a statement to Hespress, that the problem of liquidity at banking agencies is likely to worsen during the coming period associated with commercial and consumer events, such as Eid al-Adha, the return of Moroccan immigrants from abroad, and the start of the summer holiday season, stressing that withdrawals and deposits are increasing in the agencies, especially since Purchasing sacrificial animals, for example, is done entirely through manual transactions, i.e. payment in cash.

It is worth noting that the popularity of “cash” jumped to 394.8 billion dirhams at the end of last February, which threatens to escalate the risks of monetary inflation, due to the increase in the volume of the currency in circulation at a rate exceeding the growth of the gross domestic product, in light of the continued use of bank automatic windows for cash withdrawal operations mainly, This explains the increase in their number in a manner contrary to the pace of opening of banking agencies, as it jumped to 8,176 counters, an increase of 0.2 percent.