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Tunisia central bank warns buying treasury bonds risky to inflation and currency

Tunisia's central bank warned on Tuesday that government plans to ask it to buy treasury bonds have real risks to the economy, including more pressure on liquidity, high inflation, and a drop in the local currency.

TUNIS, Oct 27 (Reuters) - Tunisia's central bank warned on Tuesday that government plans to ask it to buy treasury bonds have real risks to the economy, including more pressure on liquidity, high inflation, and a drop in the local currency.

It added it is committed to tackling inflation and financial stability.

The government is likely to ask the central bank to buy bonds for the first time in order to finance a record budget deficit expected in 2020, the finance minister said last week.

(Reporting by Tarek Amara, Editing by Rosalba O'Brien)

((tarek.amara@thomsonreuters.com;))

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