Tunisian President Kais Saied appointed Fahmi Zouhair Al-Nouri as the new governor of the Central Bank on Thursday, replacing Marwan Abbasi.
Al-Nouri, 69, a member of the Central Bank’s Board since 2016 and an economics professor specializing in energy issues, is taking charge amid tough economic times marked by slow growth and high unemployment.
His appointment comes after Parliament approved changes to allow the Central Bank to provide exceptional funding for the budget deficit. This move aims to alleviate some of the economic strain, including $16 billion in external debts.
Previously, Tunisia had a preliminary agreement with the IMF for a $2 billion loan, but negotiations stalled when Saied rejected IMF-recommended reforms, citing concerns over their impact on the economy.
Former Central Bank Governor Marwan Abbasi warned that the loan would lead to “a decline in foreign exchange reserves with potential negative repercussions on the Tunisian dinar.”
Al-Nouri faces the task of managing an economy that grew only by 0.4% in 2023 due to severe drought, according to the National Institute of Statistics (INS).
According to the INS, Tunisia's unemployment rate rose to 16.4% at the end of 2023 compared to 15.2% at the end of 2022.
Also, the country experiences high inflation rates (around 8% over one year), fueled by rising prices of grains and energy linked to the Russian war on Ukraine.
