Dinar depreciation: net loss of 4.2 billion dinars in two years for the state (OTE) | Tunisia News Gazette

Dinar depreciation: net loss of 4.2 billion dinars in two years for the state (OTE)

Cumulatively over the years 2016 and 2017, the state has lost the equivalent of 4.2 billion dinars in foreign currency due solely to the depreciation of the dinar.

On the other hand, the state is faced with a shortfall, over the same period, of an equivalent of 1.2 billion dinars in foreign currency due to the concession on the exchange regime made to non-resident companies in Law 72 (Article 6) “, said the Tunisian Observatory of the Economy (OTE), in an analysis published Tuesday and entitled Devaluation of the dinar: a Net Loss of 4.2 billion dinars in Two years for the State”.

It should be noted that Article 6 of Law 72 allows non-resident companies not to repatriate their export earnings. In return, they do not draw on the country’s foreign exchange reserves for their imports.

“Even if the state were to recover these currencies, the balance sheet of the depreciation on the foreign currency reserves would be still negative at an equivalent of 3 billion dinars in foreign currency,” OTE added.

It noted that the state does not benefit from the gain in competitiveness enjoyed by non-resident companies that are totally exporters thanks to depreciation but it does pay the negative consequences of this depreciation on imports by resident companies.

In this context, the Observatory backed the recommendation made by the BCT on “the imperative to review the current economic model that has reached its limits especially for the offshore regime whose contribution to value-added and also to the enrichment of foreign currency assets are reduced.

It should be recalled that 60% of exports and 27% of imports in Tunisia in 2017 were carried out by non-resident companies, and therefore have not positive or negative impact on the country’s foreign exchange reserves.

Source: TAP News Agency

Minister of Tourism and Handicrafts, Selma Elloumi, said Thursday that the promotion of tourism in
Tunisia endeavours to develop strategies and programmes to ensure its self-sufficiency in medicine, said Tuesday
The construction works of the seawater desalination plant in Zarat (Gabes) will start by the
Thirty road accidents causing the death of 13 people and wounding 48 took place during
A minibus transporting workers caught fire after colliding with an electric pole as it tried