Latest news with #pre-Eid
African Manager
07-04-2025
- Business
- African Manager
'An outrage to the institution on Hedi Nouira Street'
In a long-anticipated decision, the Board of Directors of Tunisia's Central Bank (BCT) has lowered its benchmark interest rate by 50 basis points to 7.5%. The stated goal: to revive a stagnant economy plagued by sluggish growth and weakened domestic demand. The less visible aim: to smooth tensions through a decision more political than economic or financial! Balancing the urgency of immediate growth with the need for long-term stability, the BCT is walking a tightrope. Every forward step risks a steep fall if structural reforms, heavily emphasized in February 2025, fail to materialize. In short, this bold gamble risks becoming a cure worse than the disease. BCT warned of 'strained liquidity' and 'vulnerable banks' First, some context. Between the pre-Eid week (featuring a meeting between Governor Nouri and President Saïed) and the last week of March (marked by a cabinet meeting on legislation governing the BCT), this decision was closely watched, even expected. Only the percentage cut remained in question. Now confirmed, the move raises concerns—especially given the BCT's February 2025 warning about over-reliance on domestic financing for the Treasury, citing strained liquidity and a fragile banking system. By easing monetary policy, this rate cut could worsen these vulnerabilities. Other critical risks loom, including threats to the BCT's core mandates: price stability and foreign exchange reserves. Despite reserves recently surpassing 100 days of imports (101 days as of March 25), they remain under pressure and could further erode if foreign currency demand rises. Meanwhile, looser monetary policy risks reigniting inflation. The specter of political interference? Political pressures also cast a shadow. With the Treasury desperate for funds, the BCT appears to yield to short-term budget support demands under the 2025 Finance Law. This compromises its operational independence and credibility. Recall the BCT's February 2025 statement, which urged structural reforms over monetary quick fixes. The message was clear—yet ignored. While the rate cut may offer short-term economic relief, it exposes Tunisia to deeper financial imbalances. Between stimulus and stability, the BCT's move reeks of political maneuvering, a 'perilous game.' Local media reported last Tuesday that a 'verbal agreement' was struck between the President and the BCT Governor to gradually loosen monetary policy. Though unconfirmed, the BCT's decision tacitly endorses this narrative. Timing is also suspect. The BCT's Board could have waited until after Eid, allowing time for reflection and the release of consumer price data by the National Statistics Institute. But with Ramadan and Eid spending looming, the decision's timing seems politically, not economically, driven. Monetary easing vs. inflation risks While lower rates may boost credit access for businesses and households, they risk exacerbating financial instability. A lenient policy could further strain banks already grappling with non-performing loans, especially if borrowers—emboldened by lower rates and potential amnesty for bounced checks—default. Moreover, monetary easing could stoke inflation as import prices remain sensitive to dinar fluctuations. The dinar, already pressured by dwindling reserves, relies heavily on BCT interventions. Add to this the danger of eroded investor confidence, which could deter foreign capital crucial for recovery. The BCT's Defense In its official statement, the BCT justified the decision: 'Recent inflation trends have lowered inflation projections. However, wage hikes in both public and private sectors may raise production costs and spur demand amid stagnant capacity—worsened by persistent drought and slow reforms. Annual inflation is expected to drop from 7% in 2024 to 5.3% in 2025. Risks remain, including global commodity prices, demand dynamics, and fiscal imbalances. After deliberation, the Board concluded that disinflation has progressed sufficiently. Reducing the key rate to 7.5% reflects our commitment to price stability while supporting growth. We remain vigilant amid rising uncertainties.' An expert's blunt take Professor Hachemi Alaya, in his March 30, 2025 'EcoWeek' column, argues that what has been decided is 'an outrage against the institution on Hedi Nouira Street', that 'Tunisian inflation is far from being disarmed', that there is confusion among Tunisian economic and monetary decision-makers because 'access to finance is not reduced to cost.' 'I have gone through all the studies and reports on the obstacles to investment in Tunisia, but nowhere have I found the high level of interest rate,' he pointed out. For Professor Alaya, the saving grace lies in 'the urgent need for Tunisia to understand that printing money does not create wealth (otherwise there would have been no poor people a long time ago), to limit, if not prohibit, the subscription of Treasury bills by the central bank and commercial banks, and to make the public sector (STB-BNA-BH) a pole dedicated almost exclusively to financing investment'. For their part, some experts have no hesitation in recommending that the BCT and the banks set up a system of removable interest rates by sector of activity to target those they wish to boost by facilitating access to credit. Such facilitation would then be selective, depending on the economic choices made by the State (for example, investment or consumption, and the criteria could even be refined), and would avoid a generalized impact on inflation!
Express Tribune
24-03-2025
- Business
- Express Tribune
Markets bustling with shoppers ahead of Eid
As the last ten days of Ramazan begin, the markets in Rawalpindi and the cantonment area are witnessing an overwhelming rush, bringing the parking system to a standstill. Two hours before Iftar, the city's main roads become completely clogged, leaving even ambulances stuck in traffic for hours. After Iftar, commercial hubs, including Murree Road, Teeli Mohalla, Rehmanabad, Rawal Road, Iqbal Road, Liaquat Road, Bara Market, Raja Bazaar, Mochi Bazaar, Moti Bazaar, Bohar Bazaar, Commercial Market, Jamia Masjid Road, Dingi Khoi, Banni Chowk, Kalan Bazaar, Purana Qila, Urdu Bazaar, Lal Haveli Road, and Saddar, along with Asia's largest Tench Bhatta Market, become so crowded that walking becomes nearly impossible. The district administration's claims of widening roads through anti-encroachment operations have proven ineffective. Although large crowds flock to these markets from sunset until midnight, shopkeepers report a significant decline in actual sales. The traditional pre-Eid shopping rush has yet to materialise, primarily because government and private sector employees have not received their salaries. Since Ramazan started on March 2, employees spent their March wages on Iftar and Suhoor expenses. With Eid shopping beginning only after salary disbursements on March 26, there has been a slow but noticeable increase in purchases. However, garment, shoe, and artificial jewellery prices have surged by 30-40 per cent compared to last year. The government employees are finding prices unaffordable, with many leaving stores disappointed. Shopkeepers said that while there are plenty of visitors, most leave without buying anything due to high prices. During the day, wholesale markets like Gawalmandi, Ganjmandi, Nankari Bazaar, Hamilton Road, City Saddar Road, Fawara Chowk, Kashmiri Bazaar, Liaquat Road, Jamia Masjid Road, Ghazni Road, and Pirwadhai face chaotic congestion due to heavy traffic and loader vehicles, paralysing the traffic system. Traffic wardens, though present, are often overwhelmed by the sheer volume of vehicles and resort to standing aside, unable to control the situation. Road rage incidents have become common as drivers jostle to move forward, further crippling the traffic flow. Many commuters are forced to break their fasts in their cars or on motorcycles due to the gridlock. With the final ten days of Ramadan expected to bring even worse traffic conditions, traders have suggested making major commercial routes one-way and banning haphazard parking on roadsides to ease congestion. In Tench Bhatta Market, which is one of the oldest and most crowded in Asia, traffic has become impossible to navigate during office and school hours, as well as in the evenings after Iftar, lasting until midnight. Box Measures implemented for Eid rush our correspondent Rawalpindi. The City Traffic Police (CTP) Rawalpindi has introduced special measures during the last 10 days of Ramazan and Eid shopping to ensure smooth traffic flow. To manage congestion in busy markets and shopping centres, Chief Traffic Officer (CTO) Benish Fatima has directed that over 50 personnel from the Traffic Headquarters Race Course be assigned to field duty to prevent traffic issues for citizens. Key areas receiving extra traffic management support include Commercial Market, Tench Bhatta Bazaar, Raja Bazaar, Saddar, Adiala Road, Sadiqabad, and various shopping malls and commercial centres. Moreover, Tench Bazaar has been made one-way, and a traffic advisory has been issued on social media to inform the public. CTO Benish Fatima said that traffic management in major markets will be further improved, with strict action against illegal parking, encroachments, and traffic violations to ensure a hassle-free shopping experience for citizens.
Observer
15-03-2025
- Observer
Eid Al Fitr most likely on March 31; one-week holiday anticipated
Astronomers in Oman have predicted that the first day of Eid Al Fitr is likely to fall on Monday, March 31. This means that holidays in Oman are anticipated to begin on Sunday, March 30 and run till Thursday, April 3, giving citizens and residents a five-day break. While a five-day break sounds good, there is hope for an even longer holiday as Friday (April 4) and Saturday (April 5) will be weekend making it a nine-day break running from pre-Eid weekly off days. Abdulwahab al Busaidy, head of the observatory at Oman Astronomical Society, said that the first day of Eid Al Fitr, in all likelihood, would fall on Monday (March 31), because the 29th of Ramadhan, which is equivalent to March 29, the sun will set at 6:21 pm and the moon will set at 6:26 pm and that it will be nearly impossible to see the moon on that day. "The moon will be on the horizon for only five minutes, depending on your location. It will be above the horizon only two degrees, with an illumination of 0.04 per cent. So, in countries like Oman, where we rely on moon sighting, it will be nearly impossible to see the moon on March 29," Al Busaidy said. "Therefore, we will complete 30 days of Ramadhan and the first day of Eid Al Fitr will be on Monday, March 31," he added. For countries that rely solely on the birth of a new moon, Al Busaidy said they may fast only 29 days and their first day of Eid Al Fitr will be on March 30. With the long holiday expected, excitement has begun. 'I have finished all my Eid shopping and I am now considering ways of enjoying the anticipated long break. I wish the authorities announce the holidays early so that we can plan ahead. I am planning to use the holiday to visit all parts of Oman as the weather is still cool,' said Salaah Abdullah, an accounts auditor based in Muscat. Suhar resident Mohammed al Balushi said he is currently considering flight options to Kenya for safari for a 5-day break. "And if we get a 9-day break, I will use it to explore the whole of East Africa because I have always wanted to go to Africa to enjoy greenery," he said. According to Observer online poll, nearly 57 per cent of readers said that they would decide on travel plans only after official holidays are announced. It may be noted that foreign travel needs months of advanced planning, which includes the process of visa application, getting affordable flight and hotel rates and of course leave approvals.
