The narrowing of the current account deficit, noted by the BCT in its latest economic note of October 2020, has had a positive effect not only on the stock of foreign currency but also on the exchange rate of the dinar, particularly against the US dollar.
Indeed, pressures on the external account remain active and any deterioration in the trade balance (due to a disproportionate acceleration of imports, not accompanied by a consequent strengthening of exports) and/or the services balance could worsen the current account deficit.
As of October 5, 2020, foreign exchange reserves amounted to USD 7,599 million (or 143 days of imports), up 9.9% compared to their level at the end of 2019 (USD 6,955 million or 111 days of imports).
Compared to the averages of July 2020, the exchange rate of the Dinar depreciated in August 2020 by 0.7% against the Euro and appreciated by 2.6% against the U.S. Dollar.
Compared to the same period of the previous year, the exchange rate of the Dinar, in August 2020, depreciated by 1.7% against the Euro and appreciated by 4.5% against the US Dollar, after having recorded appreciations of 0.4% and 2.2% respectively, one month earlier.