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Tunisia’s Central Bank’s Independence at Risk

© Allen Dreyfus
  • Tunisian cabinet approves a bill allowing the central bank to directly finance the treasury, raising concerns about the erosion of the bank’s independence amid a deepening budget deficit.
  • Economic experts warn of severe repercussions, including soaring inflation and increased state control over monetary policies, as Tunisia faces escalating fiscal challenges and potential default.

 

In a controversial decision, the Tunisian cabinet has ratified a bill permitting the central bank to directly finance the treasury, a decision that has stirred anxieties about the erosion of the bank’s independence.

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