Circular of the BCT to Approved Intermediaries No. 2018-15 dated December 26, 2018

Tunis, December 26, 2018
CIRCULAR TO APPROVED INTERMEDIARIES No. 2018-15 Subject: Foreign currency money market, investments and uses of non-transferable foreign currencies, and refinancing in foreign currencies with the Central Bank of Tunisia.

The Governor of the Central Bank of Tunisia,
Having regard to the Foreign Exchange and External Trade Code promulgated by Law No. 76-18 of January 21, 1976, consolidating and codifying the foreign exchange and external trade legislation governing relations between Tunisia and foreign countries, as amended by subsequent texts, particularly Legislative Decree No. 2011-98 of October 24, 2011, Having regard to Law No. 2016-35 of April 25, 2016 establishing the status of the Central Bank of Tunisia; Having regard to Decree No. 77-608 of July 27, 1977, setting the implementation conditions for the aforementioned Foreign Exchange Code, as amended by subsequent texts, particularly Governmental Decree No. 2017-393 of March 28, 2017; Having regard to the Foreign Exchange Opinion of the Minister of Finance regulating the investments and uses of non-transferable foreign currency assets, published in the Official Journal of the Tunisian Republic on February 5, 2008, Having regard to Circular No. 92-13 of June 10, 1992, concerning the foreign currency money market, investments and uses of non-transferable foreign currencies, and refinancing in foreign currencies with the Central Bank of Tunisia, as amended by subsequent texts, particularly Circular to Approved Intermediaries No. 93-01 of January 6, 1993; Having regard to the Compliance Control Committee Opinion No. 2018-13 of December 25, 2018, as provided for in Article 42 of Law No. 2016-35 of April 25, 2016 establishing the status of the Central Bank of Tunisia; Decides:

Article 1: The provisions of Article 6 of Circular to Approved Intermediaries No. 92-13 of June 10, 1992, concerning the foreign currency money market, investments and uses of non-transferable foreign currencies, and refinancing in foreign currencies with the Central Bank of Tunisia, are repealed and replaced by the following:

« Article 6 (new): Approved Intermediaries may use, without prior authorization, resources consisting of non-transferable foreign currencies belonging to their resident and non-resident clients for the following uses:
a) Investment in the local foreign currency money market in accordance with Article 3 of this circular. b) Investment with their correspondents of foreign currency assets belonging to their non-resident clients. Eligible correspondents for these investment operations must hold at least one short-term rating from one of the three major international rating agencies (Standard & Poor’s, Moody’s, Fitch Ratings). This rating must be at least A-2 (S&P) or an equivalent rating. c) Purchase and sale on the foreign currency money market of bank acceptances issued by the Central Bank of Tunisia, which sets their currency, amount, interest rate, and maturities. d) Granting financing to the State, in accordance with current legislation and regulations, on foreign currency assets belonging to their non-resident clients. e) Financing import and export operations of resident enterprises and non-resident enterprises established in Tunisia operating in the industrial and service sectors, as well as export operations of locally originated products carried out by non-resident international trade companies established in Tunisia, including the use of forfaiting or any other similar foreign currency financing instrument. The aforementioned import and export operations must be carried out in accordance with the current foreign exchange regulations. f) Financing investments carried out in accordance with current foreign exchange regulations by resident exporting enterprises. g) Granting to the non-resident enterprises and companies referred to in paragraph (e) above, operating loans other than those provided for by the same paragraph. h) Investment with the Central Bank of Tunisia in the form of remunerated deposits. i) Any other use authorized by the Central Bank of Tunisia. »

Article 2: This circular enters into force upon its notification.
The Governor
Marouane EL ABASSI