Tunisian foreign reserves hit new low
Tunisia’s economic struggles continue as the central bank figures from June 8th show that Tunisia’s foreign currency reserves have dropped to their lowest levels in 4 years. Reserves fell to just 21 billion dinars ($6.78 billion), just enough to cover 91 days of imports, according to The Arab Weekly.
This decline will increase the pressure on Tunisia to secure the International Monetary Fund loan of $1.9 billion.
However, President Kais Saied has expressed reluctance towards complying with the IMF’s conditions for the loans. Some of the conditions involve reducing subsidies on flour and fuel, downsizing the extensive public administration sector, and privatizing unprofitable state-owned enterprises.
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Saied warns that such measures could have drastic repercussions for the social order in Tunis, causing extensive social unrest. Nevertheless, Tunisians continue to endure shortages of several staples, like rice and bread, in addition to certain medicines. With the economy teetering on the brink of collapse and the populace growing increasingly discontented with both Saied’s leadership, it is blatant that immediate relief is necessary.
If authorities fail to secure foreign loans, there is a growing concern among Tunisians and economists alike that the situation will continue to deteriorate rapidly.
The Arab Weekly/Maghrebi
