Central Bank of Tunisia's Foreign Exchange Reserves Decline
The Central Bank of Tunisia's (BCT) net foreign exchange reserves recorded a decline as of October 22, 2024. This decrease amounts to 2302.9 million Tunisian dinars (Mtnd) compared to the same period in 2023.
In terms of import coverage, the reserves have dropped from 119 days last year to 110 days, a decrease of nine days. This indicator is crucial for evaluating the country's ability to meet its international obligations.
This evolution of foreign exchange reserves reflects the growing economic pressures Tunisia is facing, particularly in managing its external debt.
In fact, the cumulative external debt service has reached 12,562 Mtnd, an increase of 4252.9 Mtnd compared to 2023. This surge highlights the difficulties the country is facing in stabilizing its public finances while meeting its commitments to foreign creditors.
The monetary sector is not immune to these fluctuations, with significant variations on the money market. For example, long-term refinancing operations have experienced a notable change, with an increase of 717 Mtnd for operations exceeding six months.
However, the overall refinancing volume has recorded a slight decrease, reaching 12,338.2 Mtnd compared to 12,914.5 Mtnd the previous year.
The benchmark interest rate has remained stable at 8%, as has the money market rate (7.99%). This indicates that the BCT is maintaining a prudent monetary policy to contain inflation and stabilize the Tunisian dinar.
However, the stability of these rates has not prevented the foreign exchange reserves from declining.
On a positive note, the tourism and labor income sectors have shown encouraging signs. Cumulative tourism revenues have increased by 151.5 Mtnd compared to 2023, reaching 5980 Mtnd.
Similarly, cumulative labor income has slightly improved, standing at 6357 Mtnd. These indicators suggest that, despite economic difficulties, certain sectors continue to contribute positively to foreign exchange reserves.
