The intermediary objective is to match the money supply growth with economic activity growth. Monetary policy privileges interest rate which must play a vital role in mobilizing savings and maximizing the allocation of resources. Thus, the monetary market rate is the reference to banks when fixing their credit and debit interest rates. Banks are free to fix interest rates. Rediscount as a refinancing technique was given up in November 1996, after canceling the bonus of interest rate reserved, up to that time, to essential activities.
Banks can exchange liquidity on the monetary market.
The Central Bank of Tunisia is responsible for regulating the market. It intervenes to supply or mop up liquidity. The Treasury finances itself at market conditions through issuing Treasury Bonds. Obligatory Reserve finishes up the regulating measures of Bank liquidity. This duration must be a multiple of ten days, ten months or ten years.