Explosion of cash: the downside of the new check law

Tunisia is grappling with an unintended consequence of its recent financial legislation: a significant 'cash explosion' that undermines the formal banking system. Economist Ridha Chkoundali has sounded the alarm, explaining that new, stricter regulations surrounding checks, including severe penalties, have backfired. Instead of promoting digital or formal transactions, the law has pushed many businesses and individuals towards cash payments, a trend exacerbated by the removal of the previous 5,000 dinar transaction limit.

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the hardening of the legal framework surrounding the check and the severity of the associated sanctions have provoked an effect opposite to the one expected, favoring an explosion of physical monetary circulation to the detriment of formal banking circuits.

This move towards 'all cash' is not merely a matter of preference; it represents a substantial flight of liquidity from the banking sector into the informal economy. Chkoundali points out that this dynamic has been further fueled by the implementation of electronic invoicing requirements under the 2026 Finance Law, which are perceived by economic actors as an additional burden. The result is a weakening of the banking sector and a loss of oversight over financial flows, creating vulnerabilities within the national economy.

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This trend towards 'all cash' engenders a massive flight of liquidity out of the banks' coffers, with cash now circulating directly on the parallel or informal market.

From the perspective of La Presse, a Tunisian publication often focused on economic and political analysis, this situation demands urgent attention. The expert's call for parliamentary intervention highlights the need for a swift review of both the check law and electronic invoicing regulations. The goal is clear: to stabilize the economy by re-establishing confidence in formal financial channels and curbing the potentially damaging effects of widespread cash circulation. The unique Tunisian context, where informal economies often play a significant role, makes the management of such financial shifts particularly critical.

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This dynamic has intensified with the entry into force of the new provisions on electronic invoicing introduced by the Finance Law 2026, perceived as an additional constraint by economic agents.