Tunisia’s banking system faces mounting pressure as cash in circulation climbs to 27.5 billion dinars ($9.6 billion), an increase of roughly 20 percent over the past year, according to data from the Central Bank, Reuters reported.

The surge reflects broader behavioural patterns, with many Tunisians continuing to rely on cash for everyday transactions. Adoption of electronic payments and digital banking remains slow outside major urban centres, reinforcing the preference for physical currency.

A legal change introduced last year also contributed to the rise. The new regulations imposed stricter rules on bank cheques and increased penalties for bounced or invalid cheques, prompting businesses and individuals to withdraw larger sums to cover payments.

The growth in cash holdings has a direct impact on banks’ operations. Reduced deposits limit the funds available for loans, affecting both households and businesses, while increasing the challenge of managing liquidity amid higher physical currency circulation, Reuters noted.