Debate in Tunisia over Role of Currency Exchange against Black Market

A shopkeeper counts money in of his shop at a bazar in Tunis, Tunisia. (Reuters file photo)
A shopkeeper counts money in of his shop at a bazar in Tunis, Tunisia. (Reuters file photo)
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Debate in Tunisia over Role of Currency Exchange against Black Market

A shopkeeper counts money in of his shop at a bazar in Tunis, Tunisia. (Reuters file photo)
A shopkeeper counts money in of his shop at a bazar in Tunis, Tunisia. (Reuters file photo)

The Central Bank of Tunisia (BCT) has allowed foreign exchange activities outside the banking system, in favor of a group of licensed manual exchange offices. This has allowed financial activities to develop and evolve over the past months, reaching about 25 offices, up from seven in June.

BCT Governor Marouane Abassi confirmed that the bank has approved 45 applications to open exchange offices since the beginning of the year, which is expected to contribute to increasing the number of those offices that work in coordination with the Central Bank and the rest of the banking system.

Abbasi hopes this will curb illegal and speculative activities that are part of illegal financial operations, such as in the black market.

There are currently six exchange offices in Tunis, six in Sousse and three in each of Nabeul, Mahdia and Madania.

Legally, exchange offices are bound to the BCT, which determines the conditions for obtaining their licenses and the reasons for revoking their authorization in case of breaches.

Anyone wishing to engage in manual exchange is required to provide a bank guarantee of about $17,000 to the central bank.

The bank confirmed that licensed manual exchange offices will contribute to the legalization of currency purchase, which will limit illegal means of buying and selling currencies in Tunisia.

At least $1 billion is traded outside the banking system, leading to enormous economic damage resulting from the decline in domestic reserve of foreign currencies and banks losing a significant financial commission from various exchange operations, according to official statistics.

Some experts are skeptical about the effectiveness of these offices in reducing the phenomenon of illegal speculation in hard currency.

However, others believe that the results are beginning to emerge, as Tunisia's foreign exchange reserves have risen to around 95 supply days, after hitting a low of 73 during in early 2019.



Saudi Mineral Resources Minister, US Energy Secretary Discuss Strengthening Strategic Cooperation 

The Saudi and American delegations meet at the Ministry of Industry and Mineral Resources on Sunday. (SPA)
The Saudi and American delegations meet at the Ministry of Industry and Mineral Resources on Sunday. (SPA)
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Saudi Mineral Resources Minister, US Energy Secretary Discuss Strengthening Strategic Cooperation 

The Saudi and American delegations meet at the Ministry of Industry and Mineral Resources on Sunday. (SPA)
The Saudi and American delegations meet at the Ministry of Industry and Mineral Resources on Sunday. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held official talks on Sunday with US Secretary of Energy Chris Wright as part of his current visit to the Kingdom.

The talks at the ministry headquarters in Riyadh focused on strengthening the strategic relationship between Saudi Arabia and the US in the mining and minerals sector.

They explored ways to expand cooperation in the mining sector and emphasized the importance of minerals in the energy transition, advanced technology industries, and modern economies linked to clean energy, as well as their significance in the electric vehicle industry and its components.

The two sides discussed ways to boost economic cooperation and high-value investment opportunities in both countries and the enablers available to leverage these opportunities in support of deepening their longstanding partnership.

Alkhorayef invited the US energy secretary to attend the Future Minerals Forum, which will be held in Riyadh next year.

Wright later visited the King Fahd University of Petroleum and Minerals (KFUPM) in Dhahran. He was welcomed by Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz, KFUPM President Muhammad Al-Saggaf, and senior university officials.

Wright was briefed on the university's academic and research specializations, as well as its efforts to foster innovation and develop human capital in the fields of energy, engineering, and science. He met with faculty members and students and learned about the university's initiatives to advance educational and research programs in line with the highest international standards.

He was introduced to KFUPM’s international collaboration and academic exchange programs, particularly those with leading US institutions, which are designed to foster knowledge sharing, encourage joint learning, and provide students with global exposure that enhances both their academic growth and career prospects.

This visit underscores KFUPM’s role as a leading academic and research institution in the energy sector and strengthens research and academic cooperation between Saudi Arabia and the US.