A banking source revealed that the way the Central Bank will succeed in containing the black market for currency, regardless of the rate, is clear—there is well-planned strategy and deliberate steps by the Central Bank.
He continued:
First, licensing exchange companies to operate and granting them foreign currency will bring all practitioners of the activity under the umbrella of the Central Bank, allowing them to secure a very attractive profit margin. They will comply with Central Bank regulations out of fear of exclusion and license withdrawal, especially since there is a move to import foreign cash and supply the market directly.
Second, the currency reservation platform has eliminated corruption, favoritism, and the exclusion of small traders, as registration through the system has become organized and ensures fairness for everyone. This has been confirmed by the figures announced by the Central Bank.
Third, banning imports except through banking channels has struck a fatal blow to the parallel market. It will significantly reduce demand, forcing everyone dealing in the black market to turn to banks—leaving them no other option.
Fourth, registration in the tracking system will prevent fake letters of credit and reduce their volume, while increasing demand for legitimate credits, creating a more balanced currency environment. The involvement of international auditing and the implementation of strict procedures for opening letters of credit will reduce corruption and drive out money-laundering and speculative companies. This will strengthen the Central Bank’s ability to preserve foreign currency and ensure transactions reflect the market’s actual needs.
In addition, obligating companies and suppliers to use electronic payment methods will reduce the volume of cash dealings and currency speculation, as well as multiple exchange rates—particularly after the deadline for withdrawing the 20 and 5 dinar denominations expires.
All these factors point toward containing the market and enabling the Central Bank to operate within a margin it sets. However, one issue remains—the major challenge is public spending, deficit financing, and the stability of oil revenues.
