Tunisia: BCT’s intervention on money market reaches record high in December

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    After a slight easing in October 2016, bank liquidity pressures reemerged, the Central Bank of Tunisia (BCT) announced on Monday.

    These pressures are bearing the mark of restrictive effects stemming in particular from the persistence of a large current account deficit, the significant increase in banknotes and coins in circulation, and a greater reliance by the Treasury on domestic resources to fill the lack of external resources, it added.

    The BCT reports that monetary policy operations reached their highest level in December 2016 with an average of 7.476 billion dinars against 5.385 billion dinars in December 2015, up 2.091 billion dinars.

    The level of intervention helped to balance the market and reduce fluctuations in the money market rate around the key interest rate, thus securing the latter as a key instrument in the conduct of monetary policy, the BCT explained.

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