Tunisia’s president Kais Saied extended his power grab to the central bank, undermining the independence of the monetary policy in a country that suffers from an aggravating fiscal and economic crisis. Saied made the statement as he seeks direct financing of the state budget by the central bank, a move many economists warn would further worsen inflation. Shunning painful reforms to curb spending, President Saied rejected an IMF deal calling for subsidies’ cuts and a reform of public finances. The crackdown on the independence of the Tunisian central bank is seen by critics as a continuation of the president’s crackdown on the state institutions. Under Saied, Tunisia’s democratic achievements have been overturned along with its faltering economy making of it one of the countries most at risk of default.

Source: The North Africa Journal January 22, 2024 11:35 UTC