The growth rate of broad money supply (M3 aggregate) accelerated significantly in Morocco in 2024, reaching 8 percent, compared to 4 percent at the end of 2023.
This was indicated by Bank Al-Maghrib (BAM) in its monetary policy report published in the first quarterly meeting of 2025.
This momentum is mainly explained by a marked increase in bank deposits, up 9.1 percent from 2.9 percent, as well as by a significant rebound in money market mutual fund securities (+21 percent from -7.6 percent), according to the same source.
The M3 aggregate thus recorded quarterly growth of 8 percent in the fourth quarter of 2024, compared to 6.6 percent a quarter earlier.
On the counterpart side, monetary growth reflects, in particular, an increase in official reserve assets (+4.4 percent), stable net claims on the central government (+8.7 percent), and a slight decrease in
bank lending (+4.4 percent versus +4.8 percent).
A component analysis highlights an acceleration in demand deposits (+11.5 percent) and time deposits (+3.4 percent), driven primarily by household deposits. In contrast, growth in fiat money slowed to 5.2 percent after a 10.2 percent increase.
According to BAM, these monetary developments are closely linked to the one-off voluntary regularization of the tax situation of individuals.
The strong growth in the money supply reflects flexibility, partly boosted by exceptional tax measures.
SL/te/fss/as/APA