Its Xavier Blog

  Fethi Zouhair Nouri, the recently appointed Central Bank Governor of Tunisia, faces a turbulent economic landscape marked by a looming debt crisis and stalled IMF bailout talks. Analysts, including Hamza Meddeb of the Malcolm H Kerr Carnegie Middle East Centre, describe the situation as "exceptionally challenging," emphasizing the urgency of addressing pressing financial issues. Nouri, a seasoned economist and former member of the Tunisian Economic and Social Council, must grapple with the delicate balance of financing the government deficit, servicing debt, and mitigating inflation. The scarcity of foreign funding adds an extra layer of complexity to his role. Additionally, Nouri must safeguard the independence of the central bank, particularly in the wake of parliamentary approval allowing the regulator to fund part of the government's financial needs. As Tunisia seeks economic stability, Nouri's leadership will play a pivotal role in navigating these uncertain ...

  In an effort to counteract the escalating inflation and establish control over inflation expectations, Egypt 's central bank took an unconventional step by raising overnight interest rates. The unexpected 100 base point increase, pushing the overnight lending rate to 20.25 per cent and the overnight deposit rate to 19.75 per cent, has left many speculating about the potential consequences. As Egypt navigates economic uncertainties, the rate hike's impact on different sectors is being closely scrutinized. While it may help curb inflation, concerns are being raised about the implications on businesses, borrowing costs, and consumer spending. Access to affordable credit could be restricted, making it difficult for businesses to grow and invest. Households might feel the pinch of higher borrowing costs, affecting their disposable income and overall economic activity. The central bank's Monetary Policy Committee has emphasized the need to address inflationary pressures, but fi...