Summary:

On 14 March 2024, the cabinet meeting headed by Prime Minister Hachani approved a draft law that would overhaul Tunisia’s foreign exchange system. 

The government has posited that the updated law will improve the investment climate in Tunisia, increasing the ease of making foreign transactions for international businesses. The law also seeks to pursue a gradual liberalization of foreign currency policy, making the movement of funds and opening of accounts in Tunisia for both Tunisians and foreigners and a more streamlined process. 

Current foreign exchange regulations are onerous, preventing Tunisian businesspeople from accessing foreign currencies and foreign credit. The current system also imposes penalties on Tunisians in possession of foreign currency who cannot document its source. 

The law also seeks to address challenges related to residency in Tunisia and issues accessing foreign currency as well as the use of crypto assets, overseas transfers, and the current regime of fines for violations of currency policies. 

The current foreign exchange law was published in 1973 and last updated in 1993. 

Outlook: 

While the draft law’s sponsors promise that it will be a revolutionary step toward modernizing Tunisia’s economy, much remains to be seen as the law is reviewed by Parliament. The promises from Prime Minister Hachani and others point toward a necessary modernization of a system that continues to lag behind.  

The foreign exchange system is infamous for frustrating Tunisian businesspeople and entrepreneurs that are often driven abroad or forced to abandon operations due to the challenges in accessing foreign currency and markets. 

While Tunisia’s relationship with foreign exchange has remained fraught over the years, numerous grey and black market economies have emerged around accessing foreign currency. These markets continue to facilitate the activity that the government either prohibits or makes excessively challenging with regulations. If foreign exchange policy evolves, there is potential for unpredictable disruptions in these secondary markets. 

Explore our services or speak with our team of North Africa-based risk experts.