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Tunisia: Central bank to securely weaken the dinar says finance minister

19.04.2017

The central bank is going to minimize its interventions to reduce the value of the dinar in a gradual slide of the dinar.

Tunisian finance minister last Tuesday disclosed that the central bank will reduce its interventions in order to weaken the value of the dinar while preventing a dramatic slide of the currency.

The finance minister, Lamia Zribi said "the central bank is going to minimize its interventions to reduce the value of the dinar in a gradual slide of the dinar, but we will avoid a brutal devaluation like that in Egypt."

This strategic gesture of the Tunisia's central bank is in line with Tunisia's talks on reforms with the International Monetary Fund (IMF).

The IMF is advocating for an overhaul of Tunisia's finances and a reduction of public spending, particularly public-sector wages, where spending is among the highest globally compared with gross domestic product (GDP).

A weaker dinar would also increase exports and reduce reliance on imports. As of Monday, the dinar traded at 2.49 to the euro.