TUNIS, Feb 25 – Cash held outside Tunisia’s banking system rose about 20% over the past year to a record 27.5 billion dinars ($9.6 billion) according to central bank data released Tuesday.
The increase highlights growing reliance on cash payments in the economy and adds pressure on bank liquidity. Higher cash holdings reduce customer deposits and limit funds available for lending to households and businesses, financial analysts said.
A law introduced last year tightened rules governing the use of bank cheques and increased penalties for bounced or invalid cheques. Businesses and individuals responded by withdrawing more physical currency for transactions, which increased money circulating outside banks.
The shift has complicated liquidity management for lenders as fewer deposits remain in the financial system. Many consumers still prefer cash for daily purchases because electronic payments and digital banking adoption remain slow, especially outside major cities.
The trend underscores continued dependence on cash transactions across large parts of the country, according to analysts monitoring the banking sector.
