Summary:

On 10 October 2024, Tunisian Central Bank monetary and financial indicators showed a decrease of five days in foreign currency reserves going from 116 days of imports to 111 days. 

This development came as Tunisia recently repaid a Japanese loan of fifty billion yen (or 1.032 billion dinars) which has put pressure on its foreign currency reserves.  

As these indicators were announced, Deputy Director General of the Tunisian Trade Office, Sami Bouaziz, confirmed that shipments of products like coffee, sugar, rice, and tea will begin arriving, starting from Friday, October 11, 2024, to resolve shortages in the market. 

Indicators also showed that incoming transfers from Tunisians abroad in 2024 reached nearly 6 billion dinars at the end of September, reflecting a 2.6% increase compared to the same period in 2023.  

Tourism revenue amounted to 5.6 billion dinars which is an increase of 366 million dinars compared to the same period last year.  

Outlook: 

The need to pay off foreign debts is likely to continue exhausting Tunisia’s foreign currency reserves and impact its capacity to import essential products which will, in turn, continue to drive public frustration with shortages. 

However, revenues from tourism and remittances from the Tunisian diaspora are helping the country maintain foreign currency supplies at more than three months of exportation as the minimum standards require. While remittances are keeping many Tunisian families afloat financially, this type of influx of finances rarely supports any long-term, sustainable expansion of economic capacity. 

The shortage of essential products and their increasingly expensive prices are likely to explain the increasing remittances from abroad. Efforts on the part of Tunisian embassies abroad have also played a role, with the cooperation of the Center of Exports Promotion (CEPEX), in encouraging the Tunisian diaspora to invest in their homeland. 

Tunisia will need to continue attracting exporting firms and pursuing a year-round tourism sector to develop its currency reserves. 

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