average bank liquidity needs rise in July 2021

September 5, 2021

The banks’ average needs for liquidity increased significantly in July 2021 to around 10.384 million dinars (MD), against 8.088 MD the previous month, according to the latest note on economic and monetary developments and medium-term prospects of the Central Bank of Tunisia (BCT).

This rise reflects the restrictive effects exerted by the subscriptions of the Treasury (1,378 MD of Short-term Treasury Bills and 715 MD of national loan) and the temporary increase in demand for banknotes (570 MD caused by the Eid al-Idha).

At the level of refinancing operations, the volume of the interventions of the Central Bank amounted to 10,078 MD, in July 2021, up 2,052 MD (in m/m), essentially in the form of main operations of refinancing (5, 287 MD after 3,970 MD in June 2021) and of firm purchases of Treasury bills (3,493 MD after 3,091 MD)

Banks’ recourse to 24-hour credit facility strengthened by 154 MD (in m/m) in July 2021, to 629 MD.

In terms of interest rates, the MMR increased to 6.29% in July 2021, against 6.26% the previous month. On the other hand, the weighted average rate (WAR) of the main refinancing operations decreased to 6.28% after having stood at 6.33% in June 2021.

The Executive Board last August 3 decided to keep the key rate unchanged at 6.25%.



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