100 days of import. Tunisia’s foreign exchange reserves fall to the lowest level in 3 years

Data from the Central Bank of Tunisia showed foreign reserves fell to the equivalent of 100 days of imports, the lowest level in three years.

The central bank said the reserve had shrunk to 22.326 billion dinars ($6.97 billion) by November 9, enough to cover 100 days of imports, compared to 121 days in the same period a year ago.

The worsening trade deficit and the depreciation of the local dinar currency led to the depletion of reserves.

Tunisia’s trade deficit widened in September 2022 to a record high of 19 billion dinars ($5.93 billion).

The International Monetary Fund announced last month that it had reached an expert-level agreement with the Tunisian authorities to provide them with a $1.9 billion loan over 48 months, pending final approval in December.

In return for the loan, the Tunisian government is committing to a package of reforms, the most important of which is revising the subsidy policy and making it available to those who are eligible, and restructuring and reforming state-owned companies.

Source: AFP.