The value of Tunisians’ remittances abroad amounted to 4997.3 million dinars, which made it possible to cover 64% of the country’s total foreign debts. These transfers represent the equivalent of 25.2% of the foreign currency reserve estimated at 1,8222.4 million dinars. According to monetary and financial indicators issued by the Central Bank of Tunisia on August 30, 2021, remittances from Tunisians abroad exceeded tourism revenues by 329.7%, which amounted to 1.515.8 million dinars since the beginning of 2021.
These transfers from Tunisians abroad are estimated at 64.2% of the burden of repaying the external debt, estimated at 7784.8 million dinars, an unprecedented level according to official statistics.
According to statistical data from the National Institute of Statistics and the Agency for the Promotion of Industry and Innovation, exports and foreign direct investment declined at the end of July, which made remittances from the “diaspora” currently represent the first component of the country’s foreign exchange reserves, which, according to the Central Bank of Tunisia, mainly consist of external credits.
According to the circumstances note published by the Central Bank of Tunisia last February, the income of Tunisians residing abroad increased in 2019 and foreign currency transfers reached record levels, amounting to 1.789 billion Euros (about 5.2 billion dinars), compared to 1.584 billion Euros in the previous year and 1.230 billion Euros in 2010.
The Governor of the Central Bank of Tunisia had confirmed in previous statements that Tunisians abroad continued to support their country during the crisis period and that, without them, the levels of hard currency reserves would have been lower than what is currently available. During a seminar to present the results of a study on evaluating the extent of the real contribution of emigrant to development, the governor presented a set of statistics that confirm the important role that Tunisians abroad play in the country’s economic activity, including that Tunisians abroad recorded in 2019 a productive investment estimated at 1.7% of GDP. Tunisians abroad also contributed 10% of total fixed capital formation and 7.3% of total national disposable income in 2018. The Central Bank Governor also referred to the role played by Tunisians living abroad during the health crisis and emphasized that remittances from workers abroad continue to increase despite all the difficulties we see.
The Tunisian economy is subjected to many pressures on the level of activity, jobs and income due to the decline in tourism revenues during this period, in addition to the decline in demand for exports. Therefore, the Central Bank is seeking to compensate for it with the transfers of Tunisians abroad.
According to the June report of the Organization for Economic Cooperation and Development, the strict containment measures taken to confront the Covid-19 crisis are expected to lead to negative effects on demand and economic activity in the medium and long term.
The report stressed that the large financial package, which amounted to 2,500 million dinars, with the aim of reducing the repercussions of the pandemic, protecting people, jobs and financing institutions, was not able to reduce uncertainty about the future, as the repercussions are still not known precisely, especially since the financial cost of the crisis is not known until now and the government has not given an accurate number about the effects of the Covid-19 crisis.
