The plummeting of the Tunisian dinar’s value has exacerbated the economic crisis in Tunisia. Besides this North African country’s official currency undergoing devaluation versus the US dollar, the territory is presently faced with various problems in its economy like surging inflation and youth unemployment.
We want to help our followers, who may be holders of Tunisian dinar units, stay properly informed. We believe that sharing this latest foreign exchange-related news with them can help.
Last Friday, April 8, the Tunisian dinar fell to its lowest level against the US dollar in three years, according to international news source Reuters. The Central Bank of Tunisia’s figures showed the official currency of the Republic of Tunisia crossing the three dinars per US dollar mark.
More than two weeks ago, the United States’ official currency was traded for 3 Tunisian dinars. At the time of writing, US$1 is equivalent to 3.01 Tunisian dinars, based on the foreign exchange information posted on Xe.com.
This decline in the Tunisian dinar threatens to erode the North African country’s foreign exchange reserves during a severe financial crisis. According to the news posted online by Canadian business newspaper The Financial Post, the ongoing Russia-Ukraine War is accelerating Tunisia’s economic slump.
This development happens as commodity and energy prices increase and essentials’ supplies tighten internationally. Besides the declining value of the Tunisian dinar, inflation is an economic challenge Tunisians are struggling with, which hovers near a record high.
Additionally, the deficit is set to double, and 40 percent of Tunisians under 25 years old are unemployed. These economic dilemmas threaten migrants’ new exodus across the Mediterranean Sea to Europe.
Investors in Tunisia are not pleased with the country’s struggling economic condition as well. They have penalized Tunisian bonds and are anxious that a surge in energy and food prices and Russian tourists’ loss may hasten the cash-strapped sovereign issuer toward a default.
Moreover, Tunisia’s discussions with the International Monetary Fund on a rescue package are failing. Tunisian President Kais Saied has sought to counter news that food staples in his country had become scarce as the Russia-Ukraine War deepened his nation’s economic crisis.
Instead of believing the local bakers, he was instead forced to attack profiteering entrepreneurs he accused of starving the people by increasing food costs.
Saied appeared to be in the belief that he could fix Tunisia alone and lacked trust in others, according to a Western diplomat with knowledge of discussions between Tunisian officials and the Group of Seven or G7 nations with advanced economies.
We find the problem of the Tunisian dinar’s value declining and adding to Tunisia’s severe economic problems truly concerning. We gathered that these economic dilemmas began in January of this year.
The Tunisian police had to utilize water cannons and tear gas to disperse hundreds of demonstrators in Tunis marching to mark the North African territory’s Arab Spring uprising and demanding Saied reverse his power grab.
We learned that, since that incident, the economic conditions in Tunisia have further worsened. As the bread supply is squeezed, queues for bread have increased.
Furthermore, public sector workers have witnessed delays in their salaries’ payment, and taxi drivers have protested against the fuel price increases.
Tunisia’s economy is now less than 90 percent its size before the uprising over a decade ago. We want to note that Tunisia is among the many countries worldwide today grappling with grim economic crises.
The other nations are Afghanistan, Sri Lanka, Turkey, and Lebanon, where the pangs caused by inflation, hyperinflation, unemployment, and currency devaluation are felt by the ordinary working-class people.
We recommend President Kais Saied collaborate with his entire government machinery and his people in negotiating the terms of an International Monetary Fund program for his country’s recovery.
We believe that he can do it with the help of other significant entities in his country, assisting the Tunisian economy against the economic dilemmas of the Tunisian dinar devaluation, youth unemployment, surging inflation, and so forth.