Seven years after the ouster of President Zine El Abidine Ben Ali in January 2011, Tunisia continues to struggle with economic and consequent social crises that democracy and respect for basic freedoms cannot alone alleviate. The financial crisis has proven to be the most challenging of Tunisia's problems.

Data published by the Central Bank of Tunisia on Jan. 25 revealed that the growing trade deficit has led to the further erosion of the country's foreign currency reserves. The bank’s website indicated that reserves had dropped to 12.3 billion dinars ($5.1 billion) on Jan. 23, enough for 89 days, a 15-year low. At the end of 2016, reserves had been sufficient to cover 106 days.

Independent economic journalist Abdel Salam al-Harshi discussed the decline and its repercussions with Al-Monitor, explaining, “Foreign currency reserves are a varying indicator that fluctuates constantly. When the government settles part of its foreign debt or buys large machinery, like planes or military equipment, foreign currency reserves drop. When Tunisian expatriates make big transactions [requiring wiring foreign currency into the country], the reserves rise again. Therefore, the drop in foreign currency reserves at the Central Bank is not as dangerous as everyone is saying, but if it persists, then it would become troubling.”

Harshi attributed the current decline to a “rising deficit in the trade balance, which reached 15.5 billion dinars [$6.5 billion] in 2017, compared to approximately 12.6 billion dinars [$5.3 billion] in 2016, according to figures from the state-affiliated National Institute of Statistics. Oil prices are also fluctuating, and imports have soared. I believe this is what pushed the Central Bank to release a list of nonessential imports to limit the drop in foreign currency.”