Economics
Tunisia Takes Aim at Sagging Dinar With IMF-Backed Rate Hike
- Rate decision comes shortly after IMF mission visited Tunisia
- Central bank says move not aimed at future devaluation, float
This article is for subscribers only.
Tunisia raised its benchmark interest rate to the highest level in about 18 months, as the government looks to stem a decline in the dinar and implement reforms under an IMF loan program.
The regulator raised the key rate by 50 basis points to 4.75 percent, bank spokesman Zied Mouhli said by phone Wednesday. The move was the first change to the rate since the end of October 2015, and came shortly after an IMF mission visit this month aimed at finalizing a review of Tunisia’s loan agreement.