• On May 31, 2021, the BCT published circular

2021-02 which relates to the use of hedging

instruments against exchange rate and
interest rate risks and hedging against
commodity price fluctuations.
• Carry out currency/dinar and currency/currency
forward exchange transactions with their customers as
part of their commercial and financial transactions.
• Conclude currency/dinar and currency/currency
exchange options with their clients for their
commercial and financial transactions. The authorized
exchange options are European-type “vanilla” options.
• Carry out currency/dinar and currency/currency swap
transactions with their clients.
• Carry out “vanilla” type interest rate swap (IRS) transactions
with their clients for their financial transactions in dinars and
foreign currencies.Carry out “vanilla” type currency/dinar and
currency/currency swap transactions (Cross Currency Swap –
CCS) with their clients as part of their financial transactions in
foreign currencies.Carry out operations of interest rate
guarantee agreements "Forward Rate Agreement - FRA" on
the dinar and currencies with their customers under their
financial operations.Carry out, for the benefit of their clients,
hedging operations against commodity price fluctuations with
foreign financial organizations or on organized international
markets.
• Modernisation of the regulatory framework
• Firstly, the regulatory framework defined by law 94-117 of November 1994 and applied by
the Financial Market Council (CMF), the Tunisian regulatory authority, is currently being
overhauled.

• An initial version was presented in 2019 which provides greater flexibility and authorises the
introduction of new products, such as derivative instruments, and new practices inspired by
international standards.

• Mr Bilel Sahnoun, CEO of the Tunis Stock Exchange (BVMT), explains:

• The project involves the implementation of a legal framework inspired by the UNIDROIT
Principles of 2013 and covering both the OTC and the regulated markets, which is conducive
to the development of the market for hedging instruments (derivative products). The legal
validity of derivative products is required, especially for the enforceability of close-out netting
clauses, or the delivery of collateral in the case of collective proceedings by a participant, etc.
 EBRD develops financial markets in Tunisia

• The EBRD is supporting the Tunisian authorities in reinforcing

the mission and powers of the regulator, updating brokers’ and
financial advisors’ licensed activities and bringing the
environment for derivatives and repurchase agreements in line
with international standards. On the legal side, a modernisation
of the regime for public offerings, an upgrade of the
securitisation regulations and the creation of covered bond
legislation are intended to widen the diversity and
attractiveness of the local capital market.

• As a result, local companies will not only benefit from better

access to funding, but also a safer environment to operate in.