TUNIS — More than any time in the country's past, Tunisia must now engage in reforms to ease the financial and economic strains affecting its trade and balance of payments, according to the governor of the Central Bank of Tunisia, Marouane el-Abassi.

The International Monetary Fund (IMF) this month approved the fourth tranche of its $2.8 billion loan to Tunisia, which was arranged in 2016. The $250 million payment brings IMF's total loans to Tunisia so far to approximately $1.14 billion. Speaking at a July 11 press conference in Tunis, Abassi said the country will focus on solving its own economic crisis rather than on participating in the international financial market.

Tunisia is continuing efforts to ensure price stability and prevent inflation from entering double digits. The rate, which had been 4.25% in May 2017, reached 7.8% in June 2018 and could rise to 9% by the end of the year, experts say. In a move aimed at slowing the increase, the Central Bank of Tunisia raised its benchmark interest rate 100 points last month to 6.75%.

Also, the decline in foreign exchange reserves in Tunisia has accelerated since 2017 as a result of a spike in the trade balance deficit and diminished exchange rates in the local currency. According to daily exchange rates published July 14 by the Central Bank, the Tunisian dinar recorded a new low, reaching 3.085 against the euro and 2.640 against the US dollar.