2024-04-15 17:04:15
The Central Bank of Tunisia pumped about 15.489 billion dinars, compared to 16.518 a year ago, to support the financial market.
According to a statement by the bank, this injection comes in the context of supporting transactions between banks to provide the market’s needs of circulating cash, the value of which is estimated, according to data from the issuing institution, at approximately 21.818 billion dinars, an increase over the previous year with a value of 2834 million dinars.
The central bank uses four categories of operations to channel liquidity. The first two operations are short-term and long-term refinancing operations, and require the use of a directory interest rate.
The increase in the key interest rate was used to control monetary inflation. And increasing the cost of financing at banks in order to cause a decrease in the demand for cash, which leads to a decrease in consumption, which in turn contributes to a decrease in the inflation rate.
However, the change in the interest rate did not lead to controlling the quantity of money, and therefore monetary policies were not effective, especially in recent years, and the inflation rate targeted by these policies did not achieve the required decline.
Data recently issued by the National Institute of Statistics indicate that the inflation rate in Tunisia stabilized at 7.5 percent last March. The institute attributed this to the stability of the rate of rise in food prices in March compared to the same rate in February.
Last updated: April 13, 2024 – 20:54
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2024-04-15 17:04:15