Tunisia’s Central Bank’s Independence at Risk

• 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.