FDI inflow worked in the opposite direction, measuring EUR 745 mn in the four months of the year and remaining diversified by project and geographical region. The NBS alleviated depreciation pressures by intervening in the FX market, thereby providing additional FX liquidity to banks, and, in April, also by raising the key policy rate.
As a result, the dinar remained almost unchanged against the euro. By preserving exchange rate stability, we prevented the spillover of rising import prices of food and energy to other prices from being compounded by the effects of dinar depreciation, which was the case in previous episodes of robust growth in these prices.