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Tunisia increases reliance on Central Bank

Tunisia increases reliance on Central Bank

According to data from the Central Bank of Tunisia up to the end of August 2026, there has been a significant increase in the country's reliance on monetary financing. The outstanding credit facilities granted to the government rose from 13.55 billion Tunisian dinars at the end of 2025 to 18.65 billion dinars, an increase of 5.1 billion dinars over eight months, representing approximately 38%. Additionally, the amount of cash in circulation in the economy surpassed the 30-billion-dinar mark for the first time, reaching 30.217 billion dinars, while foreign currency reserves remained stable at around 25.68 billion dinars. These figures highlight the country's need for substantial financing despite a decline in bank funding, coupled with concerns about the continued rise in financing levels and the risks associated with the relationship between liquidity and public finances, particularly given the increased burden of public debt service and growing future financing requirements.

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