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Tunisia Can't Defend the Dinar, Central Bank Governor Says

  • Bank raised rates over fear of ‘uncontrollable’ inflation
  • Tunisia’s economy recovery has struggled since 2011 uprising
Pedestrians pass the headquarters of the Tunisian central bank in Tunis, Tunisia

Pedestrians pass the headquarters of the Tunisian central bank in Tunis, Tunisia

Photographer: Trevor Snapp
Updated on

Tunisia can’t defend its currency “even if it wanted to,” and must instead focus on narrowing its trade deficit to revive the economy, according to central bank Governor Marouane El Abassi.

El Abassi, in his first news conference since being appointed last month, said the central bank raised its benchmark interest rate by 75 basis points this week to curb inflation, which he said risked becoming “uncontrollable.”