#Tunisia : The decay of the Tunisian dinar against major currencies (euro, dollar, etc.) continues. The euro could break the bar of 3.20 Tunisian Dinars. This write-off has negative consequences for the Tunisian economy and is worried about more and more operators.
Several factors explain this situation, including the difficult economic situation, political instability, the broadening of the trade deficit, the decline of foreign assets under the effect of the current account deficit, the fall in investment, and so on. The IMF with its recommendations is no stranger to the depreciation of the Tunisian dinar. The institution has long argued that the dinar was overvalued.
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The recovery of certain strategic sectors of the Tunisian economy, such as tourism and the agro-food export sector, is not enough to stimulate the local currency.
This depreciation of the Tunisian currency makes some sectors of the Tunisian economy more competitive and the Tunisian destination more attractive for tourists and investors. However, the economic situation is still a drag on investors and tourist receipts, which are rising sharply in local currencies, remain negligible in foreign currencies.
Moreover, this fall of the dinar is mechanically translated by an increase in the debt ratio of the country, reported in local currency. It is currently around 70% of GDP.
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Moreover, the depreciation of the Tunisian dinar inevitably translates into an increase in the production costs of sectors that depend on imported raw materials and equipment. As such, it should be noted that about 70% of Tunisian imports consist of raw materials, including hydrocarbons and grains. A situation that leads to an increase in product prices and thus high inflation, which inevitably influences the purchasing power of the citizens.
Faced with this situation where the decay of the dinar is accompanied by a growing trade deficit, many experts think of the need to rationalize imports in order to preserve the current stock in currencies which each abandons. barely 70 days of importing goods. Meanwhile, the vicious circle of declining dinar and the growing trade deficit is seriously worrying and the authorities seem unable to curb this downward trend of the dinar.