Central bank triples banks' reserve requirement to 3%, from November 1, to curb liquidity

The Banque Centrale de Tunisie raised the reserve requirement rate for banks from 1% to 3% in a circular dated October 9, effective November 1: for every billion dinars in sight deposits, banks must now set aside 30 million dinars instead of 10 million. Economic analyst Bassem Ennaïfer told TAP on October 17 that the move aims to control liquidity, since cash in circulation reached about 29.3 billion dinars on October 14, and to strengthen financial stability, but warned the frozen funds earn banks little interest and could reduce lending to small and medium-sized businesses.

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