Tunisia’s fragile external finances have been shored up by a surge in remittances from citizens living abroad and a rebound in tourism, which together generated over 8.5 billion dinars (approximately €2.5 billion) between January and 20 July 2025, according to the Central Bank of Tunisia (BCT).
These inflows have covered 95.5% of the country’s external debt service, estimated at 8.9 billion dinars for the same period, offering temporary relief to a cash-strapped economy grappling with persistent pressures on foreign reserves and currency stability.
BCT data shows that remittances from the Tunisian diaspora climbed by 8.2% year-on-year to 4.6 billion dinars, underscoring the enduring role of expatriates as a financial lifeline. This confidence from abroad, despite Tunisia’s economic volatility, remains critical in offsetting foreign exchange shortages.
Meanwhile, tourism revenue rose by 8.1%, reaching 3.9 billion dinars by mid-season, figures from the Tunisian National Tourism Office (ONTT) reveal.
The recovery, though fragile, signals a slow revival for an industry battered by years of crisis — from the Covid-19 pandemic to political instability and soaring inflation. The return of European and Maghreb visitors has been pivotal in bolstering the sector’s contribution to the economy.
Despite these gains, Tunisia’s financial fundamentals remain under strain. Net foreign currency reserves dropped by 6.3% year-on-year to 23 billion dinars — equivalent to just 100 days of imports, down from 112 days a year earlier.
Simultaneously, currency circulation surged by 14.5%, with banknotes and coins in circulation reaching 25.3 billion dinars.
Economists view this spike as a sign of growing mistrust in the banking system, driven partly by inflationary pressures and legislation penalizing the use of bank checks, which has encouraged more cash-based transactions.
While the government has avoided a debt default for now, experts warn the current relief is unsustainable.
Without structural reforms to narrow the trade deficit, attract productive investment, and rebuild reserves, Tunisia’s capacity to manage its external debt over the medium term remains precarious.
About The Author
