Tunisia is mulling ways to make letters of credit (L/Cs) more accessible by reviewing its foreign exchange law.

Investors are currently required to secure central bank approval on a case-by-case basis to obtain import L/Cs, which many say is an over-bureaucratic process.

Political backing

On Saturday, Tunisia's minister of economy and planning, Samir Said, announced that the country will be reviewing its foreign exchange law within the framework of a study devised by the central bank and the International Monetary Fund.

Said emphasised that the aim of the review was to rebalance Tunisia's finances in the medium term.

Sluggish recovery

Tunisia is trying to recover from its worst ever economic crisis. Growth dropped by almost 9 per cent of GDP in 2020, recovering by just 3 per cent in 2021 while unemployment remains high at over 18 per cent.

The review of the foreign exchange law is expected to facilitate hard currency transactions to provide a more flexible currency and to help foreign investors trade more effectively and transfer their profits more easily.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.