Central Bank of Tunisia: we will soon start complex economic reforms

Tunisian Central Bank Governor Marouane Abbasi said on Saturday that his country will soon begin complex economic reforms that have been delayed for years, adding that the financial authorities are trying to keep the dinar stable.

In a Shams FM radio statement on the sidelines of a regional day on the role of an accountant in managing an institution during crises, Marwan al-Abbasi emphasized that “difficult reforms will be carried out during this period, caring for the weak, citizens and institutions suffering from difficulties.”

Al-Abbasi stated that during times of crisis there is a trend towards radical solutions because prosthetic solutions can no longer be relied upon and solutions are economical for serious problem solving.

Abbasi noted that since 2010, Tunisia has moved away from difficult reforms.

He explained that the current trend will be to find radical solutions for each sector.

Asked about concerns about the dinar’s floating rate, he said that the Tunisian dinar has no strength other than the economy and exports, as well as a reduction in foreign and domestic investment.

Al-Abbasi stated that the dinar has been stable for the past 3 years and there are changes in the euro and dollar currency levels which could affect the stability of the Tunisian currency as he put it.

According to him, al-Abbasi noted that the stability of the dinar is a profit that must be preserved.

Reforms are expected to include cutting food and energy subsidies, as well as reforming state-owned companies and reducing wages as a share of gross domestic product in the coming years, government officials said.

This month, Tunisia reached an initial agreement with the International Monetary Fund for a $1.9 billion rescue package that could be completed in December 2022.

Tunisia has been in desperate need of international assistance for months as it grapples with a public finance crisis that has raised fears it could default on its debt and contributed to food and fuel shortages.

Source: “Shams FM” + agencies