Tunisia’s dinar hits new record low versus dollar

TUNIS, May 6 (Reuters) – Tunisia’s dinar currency has fallen to new record lows versus the dollar, central bank data showed on Friday.

It traded at 3.101 against the dollar on Thursday. Last month the dinar changed hands at 3.074 for the first time, driven down by high inflation, a worsening trade deficit and the severe impact of the Ukraine crisis on public finances.

Tunisia’s annual inflation rate rose to 7.5% in April from 7.2% in March.

Last month, the state statistics institute said Tunisia’s trade deficit had widened to 4.3 billion dinars ($1.4 billion) in the first quarter of 2022, up from 3 billion dinars in the same period last year.

The decline of the dinar threatens to erode Tunisia’s foreign currency reserves, and could also make debt servicing more expensive and widen the budget deficit. It also further erodes the purchasing power of ordinary Tunisians.