Tunis, (Business News Report)|| The Tunisian dinar has fallen to a record decline against the US dollar, reaching 3.1, at a time when experts attributed the main reason to the Russian-Ukrainian war and its repercussions.
Experts stressed that the continuation of the Russian war is negatively affecting Tunisia’s finances and economy.
In turn, economist Rabah Bouraoui stressed that the low price of the dinar against the dollar would threaten the purchasing power in Tunisia, especially in light of low wages, which is considered the weakest regionally, inflation reaching high levels, in addition to the high interest rate debt.
He stressed that the price of the Tunisian dinar against the dollar was about 1.3 before the revolution, but in the past years, borrowing and the rise in the value of the public debt affected the value of the dinar.
Bouraoui stressed that the price of the dollar has witnessed a significant increase in the recent period, against other foreign currencies such as the euro, the Japanese yen and the pound sterling, not only against the currencies of the developing world only.
He explained that a large part of the public debt is in US dollars, which will make the payment of debt service high, and this will deepen the financial crisis in the country, stressing that more than 60% of the debt is repaid in hard currency.
Bouraoui stressed that the decline in the price of the dinar will affect the trade balance and raise the cost of supply, and consequently the prices of fuels and grains will rise.
In turn, the economist Moez Hadidan attributed the decline in the price of the dinar against the dollar in the global economic context after the rise in the price of the dollar against the rest of the currencies.
He also attributed in this increase to the change of US monetary policy of the Federal Reserve Bank to fight inflation, as it will implement successive increases in interest rates, which encourages investors to be proactive and convert Euros into dollars in order to reduce the value of the Euro and other currencies at a later time against the dollar.
Hadidan stressed that the decline in the Tunisian dinar price will deepen the trade deficit, which will cause the prices of imports to be paid in foreign currency.
He stressed that the solution to get out of this economic crisis is to work on the success of the tourist season, encourage foreign investment and increase exports.
The Institute of Statistics in Tunisia had announced on Thursday that the inflation rate would continue to rise after reaching a level of 7.5% in April 2022, compared to 7.2% in March, 7% in February, and 6.7% in January 2022.
Energy Minister Naila Nouira had said that the ongoing war in Ukraine had cost the state budget losses of 1.31 billion dollars due to the rise in oil prices.
Tunisia’s trade deficit worsened in the first quarter of this year to 4.3 billion dinars, or the equivalent of $1.44 billion, compared to about 3 billion dinars during the same period last year.