Cash holdings in Tunisia have surged by around 20% over the past year, reaching a record 27.5 billion dinars ($9.6 billion), according to data released মঙ্গলবার by the country’s central bank. The sharp rise highlights the economy’s growing dependence on cash, adding strain to the banking sector.
Higher cash circulation typically reduces bank deposits, limiting the funds available for lending to households and businesses. Analysts warn that the trend is tightening liquidity within the financial system at a time when economic challenges persist.
Financial experts attribute part of the increase to a new law introduced last year that tightened regulations on the use of bank cheques and imposed stricter penalties for bounced or invalid cheques. The legislation has encouraged businesses and individuals to withdraw larger sums of cash to conduct payments, further boosting money in circulation outside the banking system.
The growing preference for cash has complicated liquidity management for banks, as fewer deposits mean reduced lending capacity.
Many Tunisians continue to favor cash transactions for daily purchases, largely due to the slow adoption of electronic payments and digital banking services—especially in rural areas and outside major cities.
The exchange rate currently stands at $1 equal to 2.8580 Tunisian dinars.