Dinar ends 2023 stable against main foreign currencies

According to indicators from the Central Bank of Tunisia (BCT) posted on Friday, January 5, 2024, the value of the Tunisian dinar improved over the year 2023 by 0.78%, compared to the US dollar, which is currently worth 3.09 dinars.

On the other hand, figures from the issuing institute disclose that the Tunisian dinar declined slightly by 2.50% compared to the euro, with an exchange rate standing at 3.38 dinars. Compared to the Japanese yen, the dinar showed a notable improvement in its value of 9.30%.

The stability of the national currency is mainly attributed to the resilience of the external sector. The current operations account posted a balance of -4,234 million dinars (MD) or -2.7% of GDP at the end of November 2023, against -11,982 MD or -8.3% of GDP a year earlier.

The notable decrease in the current account deficit resulted from the continued contraction of the trade deficit, despite the energy deficit remaining at a high level, and the adequate performance of the balance of services. As of January 5, 2024, foreign exchange reserves stabilized at about 26,629.0 MD (or 121 days of import), compared to 23,081.1 MD (or 100 days of import) on the same date last year.

The money market rate stands at 7.98%, compared to 7.87% a year earlier, while the overall volume of refinancing is estimated at 15,594.2 MD. The outstanding amount of the Open Market operation is estimated at 8,385.1 MD.

Tourism receipts and TRE transfers continue their breakthrough, attaining 14,456.8 MD at the end of 2023 compared to 12,786.4 MD a year earlier.

On the international exchange market, the dollar was little altered on Friday, while its index stayed stable at 102.43. This is its highest level since mid-December. Over the week, it gained 1.1%, on track to reach its best weekly growth since mid-July. In other currencies, the greenback was slightly higher against the yen at 144.655. It hit 145.98 yen, a three-week high. The euro, meanwhile, dropped slightly against the dollar to reach $1.09405. The common European currency fell 0.9% over the week, its biggest weekly decline since early December.