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A Hard Swap – Supporting Tunisia in Better Understanding the Foreign Currency Exposure for Government Debt Operations
After the Arab Spring, Tunisia experienced a depreciation of the Tunisian Dinar and a major drop in foreign currency reserves. Concerned with the foreign currency exposure, Tunisian debt management office partnered with the World Bank Treasury - Government Debt and Risk Management Program. The joint team developed an accurate methodology to measure the fair value of these theoretical swaps, leading to better advice for economic decisions.