Tunisian President Kais Saied has sparked concerns over the independence of the country’s central bank by calling for amendments to the law governing it.
Saied met with Central Bank Governor Zouhair Nouri, stating that it’s time to change the 2016 law that granted the bank control over monetary policy, reserves, and gold.
The president’s push for amendments raises concerns about direct government intervention in monetary policy and the potential loss of the central bank’s independence.
This move comes after dozens of Tunisian lawmakers proposed a bill in October that would strip the central bank of its exclusivity over interest rates and foreign exchange policy.
Saied has been critical of the central bank’s high interest rates, which have been held at 8% since 2023. He believes that the bank should lend directly to the state treasury to avoid costly loans through private banks.
Last year, the parliament approved a law allowing the central bank to provide $2.2 billion to finance the 2025 budget and pay off urgent debts.
The Tunisian government has been facing difficulties in securing Western finance since Saied seized nearly all power in 2021, ruling by decree.
This has led to increased reliance on domestic funding, with the government turning to the central bank for support.
