2008-03-26
Press Release of the BCT Executive Board Meeting held on 25 March 2008:The international environment is still marked by fluctuating financial and foreign exchange markets, high commodities prices and raising worries about these factors impact on the world economic activity.
These trends led monetary authorities in the main developed countries to intervene urgently and simultaneously to inject an unprecedented volume of liquidity to limit the effects of these evolutions and avoid world economic recession.
Against this background, the American Federal Reserve decided to decrease its main key rate and offer the possibility to exchange commercial certificate of indebtedness for Treasury bonds to supply financial centres with sufficient liquidity and help them overcome the difficult circumstances they are facing.
At the national level, the economic activity progress was pursued as shown through the increase in export of goods and services. Yet, the international environment and its possible repercussions are likely to exert high pressure on the pace of the activity and on the global balances both at the domestic level and the external level.
This situation requires intensified efforts to better use available capacities in all sectors, improve productivity and control production costs in order to boost the economy's competitiveness in a way to lessen the impact of the international economic situation.
At the monetary level money supply progressed at end February at the same pace as the same period of last year (1.4%); whereas the money market average interest rate came at 5.31% over the same month.
As for price shift from the beginning of 2008, it is estimated at 0.4%, a higher level compared to the previous year due, notably, to world inflationary pressure.
Trend in the dinar on the foreign exchange market posted, from the beginning of the year up to 25 March 2008, 4.2% appreciation against the US dollar and 1.2% drop against the euro.
In light of these evolutions, the Executive Board decided to maintain the same key rate of the Central Bank while stressing again the need to ensure an ongoing follow up of the international economic situation and its possible repercussions on the evolution of the national economy.
