TMM Tunisia: Understanding the Central Bank's Economic Barometer

TMM: Your Compass in the Tunisian Economy

In Tunisia's economic landscape, one indicator often goes unnoticed but daily influences your business: the Taux Moyen du Marché (TMM). As a pillar of the Central Bank of Tunisia's monetary policy, TMM is much more than just a number - it's the thermometer of the country's financial health.

What Exactly is TMM?

The TMM (Interbank Average Rate) represents the average cost of funding between Tunisian banks on the interbank market. Specifically, it's the rate at which banks lend money to each other for 24-hour periods.

The BCT's Role: The Invisible Conductor

The Central Bank of Tunisia, according to law n° 2016-35, has price stability as its primary mission. To achieve this, it uses TMM as its main steering instrument. Its objective? To control inflation while supporting economic growth.

How is TMM Calculated?

TMM isn't arbitrarily set by the BCT. It emerges naturally from transactions between banks, through this well-oiled mechanism:

• Banks with cash surpluses lend to those needing liquidity

• Each transaction has its own interest rate

• The BCT calculates the weighted average of all these rates

• The result is published as the daily TMM

The 4 Pillars of BCT's Action

1. Price Stability

   The BCT uses TMM to control inflation. A higher TMM makes credit more expensive, which slows consumption and thus inflation.

2. Growth Support

   Conversely, a low TMM stimulates investment and consumption, boosting economic activity.

3. Financial Stability

   By regulating bank liquidity, the BCT ensures the proper functioning of the financial system.

4. Competitiveness

   A balanced monetary policy supports the competitiveness of Tunisian businesses.

Concrete Impact on Your Business

For Borrowers:

• High TMM = more expensive loans

• Low TMM = advantageous financing opportunities

For Savers:

• High TMM = better returns on investments

• Low TMM = need to seek alternative investments

For Exporters:

Monetary policy influences exchange rates, affecting your international competitiveness.

Where to Find Real-Time Information?

The official BCT website (www.bct.gov.tn) is the reference source. The "Monetary and Financial Statistics" section gives you access to the most recent data.

Key Figures to Monitor

• Monthly TMM: The reference for most contracts

• BCT key rate: The orientation of monetary policy

• Inflation: To understand BCT decisions

• GDP growth: The overall economic context

Business Owner Testimonial

"When we prepare our annual budget, the first indicator we check is TMM. It helps us anticipate the cost of our future loans and optimize our cash flow. It's become a strategic reflex."

Recent Trends to Know

Since 2020, the BCT has had to navigate several challenges:

• Post-COVID economic support

• Fighting imported inflation

• Preserving foreign exchange reserves

This navigation is directly reflected in TMM's evolution.

How to Integrate TMM in Your Decision-Making?

1. Budget Planning
   Integrate scenarios with different TMM assumptions into your budget.

2. Investment Timing
   Take advantage of low TMM periods to launch your investment projects.

3. Bank Negotiation
   Use TMM as a reference in your rate negotiations.

Limitations to Know

TMM is just one indicator among others. Your decisions should also consider:

• Your specific financial situation

• The sector environment

• Overall economic prospects

TMM, A Strategic Ally

TMM isn't just technical data for economists. It's a valuable tool for any manager wanting to make informed decisions. By understanding its logic and tracking its evolution, you transform a macroeconomic indicator into a competitive advantage for your business.

FAQ:

1. How often is TMM published?

   Daily, but the monthly average serves as the reference.

2. Does TMM influence savings account rates?

   Indirectly yes, as banks use it as inspiration to set their remuneration.

3. Where can I see TMM historical data?

   On the BCT website, in the statistics section.

Useful Resources:

• BCT website: www.bct.gov.tn

• BCT monthly bulletin

• Financial statistics from the National Statistics Institute