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Again, Tunisian MPs want exclusive power of central bank over interest rates abolished

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A measure by MPs on Friday indicated that the Tunisian central bank will no longer be the only entity able to alter interest rates or the country’s foreign exchange policy; rather, it will be permitted to finance the government.

President Kais Saied, who has maintained that the central bank shouldn’t be a state within a state, has continuously criticised the action, which is the most recent that will destroy the bank’s independence.

The current dire state of public finances prompts the possible significant amendment to the central bank statute. The opposition has referred to Saied’s 2021 takeover of practically all power as a coup, and since then, the nation has been unable to obtain Western support. Saied ruled by decree.

If the bank law was not altered, 27 legislators issued a dire warning, stating that Tunisia would unavoidably go bankrupt.

They claimed that the state has suffered enormous losses, estimated at $36.6 billion, due to the present law passed in 2016 and prohibits the central bank from making direct bond purchases or loans to the public treasury.

Additionally, the measure suggests that the president must give his or her consent before the bank can make agreements with international supervisory bodies.

Saied said the central bank should lend directly to the state treasury rather than through expensive bank loans, rejecting the central bank’s independence last year.

To close a budget deficit, the administration requested in January that the central bank give the Treasury $2.25 billion in direct funding.

Marouan Abassi, the former governor of the central bank, has cautioned that purchasing Treasury bonds carries risks, such as increasing inflation and depreciating the value of the Tunisian pound. Saied replaced Abassi with Zouhair Nouri earlier this year.

The central bank has had total authority over reserves, gold, and monetary policy since 2016. However, the proposed statute demonstrated that the central bank might modify exchange rates, gold-related operations, and interest rates after consulting with the government.

The bill permits the central bank to purchase government bonds from banks and lend directly to the government up to 3% of GDP for bonds that have maturities longer than five years.

According to financial sources, the action will probably open the door for a fresh government request that the central bank grant the government loans and direct facilities totalling up to $2.6 billion.

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Politics

Ugandan opposition politician abducted, wife says

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According to his wife on Wednesday, a well-known opposition leader from Uganda, Kizza Besigye was abducted during a book launch in Kenya over the weekend, taken to Uganda, and detained at a military prison in Kampala.

Despite his rejection of the results, Besigye has run against Ugandan President Yoweri Museveni four times and lost each time, claiming voting intimidation and fraud. He has been arrested several times in the past.

“I request the (government) of Uganda to release my husband Dr Kizza Besigye from where he is being held immediately,” said his wife Winnie Byanyima.

It was not immediately possible to get in touch with a Ugandan military spokesperson for comment.

“As police we don’t have him, so we can’t make any comment,” Ugandan police spokesman Kituuma Rusoke told Reuters.
A spokesperson for Kenya’s national police did not immediately respond to a request for comment.

Besigye’s Forum for Democratic Change (FDC) party, one of Uganda’s major opposition parties, had 36 members arrested by Kenyan police in July. They were then deported to Uganda and accused of terrorism-related charges.

On the social networking site X, Byanyima stated that Besigye, who served as Museveni’s doctor during the guerrilla war but later turned into a vocal opponent, was abducted on Saturday as senior Kenyan opposition leader Martha Karua was launching a book.

“I am now reliably informed that he is in a military jail in Kampala,” said Byanyima, who is the executive director of UNAIDS, the United Nations Programme on HIV/AIDS. “We his family and his lawyers demand to see him. He is not a soldier. Why is he being held in a military jail?”

Museveni’s administration has been charged with repeatedly violating the human rights of opposition leaders and followers, including extrajudicial executions, torture, and unlawful detentions.

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Sudan army chief Burhan meets US envoy

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The United States special envoy to Sudan has made his first trip to the African nation, hoping to bring an end to a horrific war and boost relief to millions of people in need.

After being appointed Washington’s ambassador to Sudan in February, Tom Perriello visited Port Sudan, the army-led government’s de facto capital on the Red Sea coast.

For the first time since the evacuation of the U.S. embassy in April 2023 due to the conflict between the Sudanese Armed Forces and the paramilitary Rapid Support Forces (RSF), a top U.S. official visited the nation.

“We feel an enormous amount of urgency to end this crisis and to ensure that we can … help to get food and medicine and life-saving support to the 20 million people plus that are in need,” a State Department official said before the trip.

Over 25 million people, or half of Sudan’s population, require help, according to the U.N., as hunger has spread to one area and over 11 million people have abandoned their homes.

Sudan’s sovereign council stated in a statement that Perriello spoke with tribal, government, and humanitarian figures in addition to Abdel Fattah al-Burhan, the country’s army head.

During what the council described as a “lengthy, comprehensive, and frank” discussion, the two men talked about how to provide humanitarian help and how to end the war through a political process.

“The U.S. envoy presented several suggestions which the head of the sovereign council agreed to,” the statement said.

Although the army declined to join U.S.-mediated peace negotiations in Geneva earlier this year, the meetings did obtain commitments from the warring parties to increase access to aid.

A power battle between the army and the RSF preceded a planned shift to civilian government, which is why the conflict broke out more than a year ago.

Perriello discussed “the need to cease fighting, enable unhindered humanitarian access, including through localized pauses in the fighting to allow for the delivery of emergency relief supplies, and commit to a civilian government,” a State Department statement said.

“Right now, I think there’s a key opportunity to build on the expansion of humanitarian aid,” the State Department official stated, emphasising the need for relief corridors to the most battle-ravaged areas, such as al-Fashir, Sennar, and parts of the capital Khartoum, even though the U.S. would continue to pursue a more comprehensive ceasefire and negotiations.

Last Monday, Sudan’s sovereign council announced that it would prolong the temporary opening of the Adre border crossing with Chad. According to relief organisations, this crossing is essential for delivering food and other supplies to famine-prone portions of the Darfur and Kordofan regions.

An RSF official stated at a press conference in Nairobi that while they were still amenable to peace, they had doubts about the army’s readiness.

“They do not listen to any language but that of the rifle, and so we will continue to talk to them in the language they understand,” said Brigadier General Omar Hamdan.

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