The volume of banknotes and coins in circulation rose on 4 July 2023 to 20,346 million dinars (MD), compared with 17,938 MD on the same day in 2022, recording an unprecedented increase of 13.4%, according to the daily monetary and financial indicators published on Wednesday by the Central Bank of Tunisia (BCT). This remarkable development in the volume of notes and coins in circulation, which represents the equivalent of the volume of coins in circulation outside the banking and financial sector, reflects an increase in the money supply, resulting from the instability of monetary policy in the fight against this scourge and its impact on rising inflation. BCT statistics show that the overall volume of refinancing increased remarkably on 4 July 2023 to 16703.5 MD compared with 11405.6 MD, i.e. an increase of 46.4%. The jump in the overall volume of refinancing is explained by a limited level of liquidity in the banking sector, in parallel with the leap in State bank loans in the form of treasury bills, to 24 billion dinars. State bank loans represent 29% of total bank loans granted to public companies, according to the latest statistics published by the BCT in its note on financial statistics published in April 2023. Lastly, the latest BCT statistics show a decline in interbank transactions on the money market to 949.7 MD on 4 July 2023 compared with 1433.1 MD a year earlier.
Source: EN – Agence Tunis Afrique Presse