Tunisia’s reliance on physical money has climbed to a new high, with banknotes and coins in circulation reaching 30.04 billion dinars ($10.5 billion) as changing payment habits keep more money in cash.
The amount recorded on August 21 was 16% higher than the 25.9 billion dinars in circulation a year earlier, according to data from the Central Bank of Tunisia.
The milestone extends a sharp rise in cash use that has gathered pace since last year, when Tunisia introduced an overhaul of its cheque system.
For banks, the trend presents a potential liquidity problem. The more money that circulates as physical cash rather than remaining in bank accounts, the smaller the pool of deposits that can be available to finance lending to households and businesses.
Tunisia’s shift towards cash has been building
