Summary:

On 22 June 2022, Central Bank governor Marouane Abassi indicated during a panel discussion that there are not near-term plans to allow Tunisians to open foreign currency bank account.

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The announcement from Abassi, which was part of a Tunisian-German Chamber of Industry and Commerce meeting, touches on a topic that has spurred growing frustration among Tunisian individuals and firms who struggle at engage in international commerce due to bureaucratic restrictions. Abassi confirmed that the restrictions on accessing foreign accounts and currencies are in place to protect the stability of the Tunisian dinar and the government’s foreign currency reserves.

The tourism-dependent Tunisian economy has floundered following the COVID-19 pandemic and the Russian invasion of Ukraine which has disrupted traditionally stable supply chains and pricing schemes. The Tunisian government has struggled to combat inflation while propping up the subsidy-dependent economy which requires the purchase of imports from abroad.

In his remarks, Abassi described the need for a gradual liberalization of the dinar in order to protect the fragile Tunisian economy.

Reports of Abassi’s comments drew negative commentary from Tunisians on social media, with many frustrated at their inability to bring their skills to the international marketplace.

Outlook:  

The cumbersome process of conducting international business remains a huge challenge for Tunisian businesses and entrepreneurs, with many choosing to move their businesses offshore when the opportunity presents itself.

The structure of the current legal and financial framework also prevents freelance workers from selling services overseas where they could potentially earn higher incomes from foreign clients.

Financial reform in this area will be necessary to empower businesses and entrepreneurs to keep their businesses based in Tunisia while earning profits in the international marketplace.

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