Economic Expert Warns of Risks Associated with Opening Foreign Currency Bank Accounts
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Economic expert Larbi Benbouhali has warned of the risks associated with opening foreign currency bank accounts for Tunisians residing in Tunisia without the authorization of the Central Bank, as part of the 2026 budget. In a post published on his official Facebook page, Benbouhali clearly expressed his opposition to the new laws that would allow this measure, estimating that they would put the country's economic stability in danger.
Opposition to New Laws
Benbouhali is in favor of reforming the 1976 laws that govern foreign currency accounts and introducing modern payment solutions, such as "Mobile Banking" for the 12 million Tunisians. He believes that the country could learn from many African countries that already have efficient mobile banking services.
Recommendations for Young Tunisians
Benbouhali recommends that young Tunisians who want to open a foreign currency account should draw inspiration from companies like Instadeep, Vermeg, or Telnet, which operate from Tunisia and have been successful thanks to the 1976 foreign exchange laws. He highlights that 65% of Tunisians do not have a bank account, and that the Ministry of Finance could assign a unique tax identification number to each citizen. The Central Bank (BCT) could then introduce Mobile Banking applications to integrate the informal economy, which accounts for 35% of the national economy, into the banking system.
Identified Risks
Among the risks identified by the expert, the first concerns the experience of China, where foreign currency accounts are strictly regulated. Chinese citizens can only convert yuan into dollars or euros with annual limits and specific justifications. According to Benbouhali, Tunisia should avoid opening the national economy's capital account to all citizens, as this would allow anyone to buy, sell, and speculate on any foreign currency without the control of the BCT, putting the value of the dinar at risk.
Economic Risks
Benbouhali recalls that Tunisia is already suffering from a chronic trade deficit, an energy and budget deficit, and that the dinar is facing higher monetary inflation than its trading partners. The widespread opening of foreign currency accounts could exacerbate the depreciation of the dinar, increase imported inflation, and force the BCT to maintain high interest rates, harming the economy.
Impact of Budget Policy
Benbouhali also cites the impact of the current budget policy. The BCT has already injected significant amounts to cover the deficit (7 + 7 + 11 billion dinars), which has weakened the dinar. In 2025, the Tunisian currency lost 3.5% of its value against the euro, and the depreciation of the dinar increases the cost of external debt, deteriorates the current account, and could affect the country's credit rating.
Illustrating the Risks
To illustrate the risks, the expert imagines 200,000 young Tunisians with foreign currency accounts wanting to buy imported products, such as the latest iPhone model, simultaneously, while other importers buy wheat, gas, or medicines. According to him, this situation would cause the value of the dinar to collapse, as was the case with the Lebanese pound and the Libyan dinar, which were devalued by 11% and 30%, respectively, despite significant foreign exchange reserves.
Economic Readiness
Benbouhali emphasizes that 77% of the Tunisian economy is based on consumption, which means that the society spends more than it produces, leaving room for speculation in foreign currencies and the displacement of capital abroad. The widespread opening of foreign currency accounts could generate hot money movements, similar to those in Egypt and Turkey, leading to significant volatility of the dinar and maintaining high inflation.
Conclusion
According to the expert, Tunisia is not yet ready for such a system. The banking system is old, and the economy is not solid enough. The presence of more than 700,000 Tunisians with dual nationality and 1.2 million expatriates would make the situation even more complex if everyone started speculating on the dinar. Even if the money comes from abroad, it passes through the BCT and affects the reserves and the national capital account.
Regional Experiences
Benbouhali cites regional experiences: the Lebanese pound (-11%), the Algerian dinar (-30%), and the Egyptian pound (-55% in two years) have all been affected by trade and budget deficits, despite supervision by their central banks. He concludes that opening a foreign currency account could be beneficial only in specific cases, such as for international transactions or the export of Tunisian products.
Recommendations
Finally, he recommends postponing the widespread opening of foreign currency accounts for five years, until the Tunisian economy and financial system are strengthened. According to him, when foreign exchange reserves reach 200 days, the government can consider allowing citizens to spend up to $10,000 per year in foreign currencies abroad, while maintaining BCT control to protect the dinar and price stability.
