Tunisia's parliament votes to sack central bank governor

July 19, 2012, Thursday/ 12:43:00

Tunisia's parliament voted on Wednesday in favour of a presidential proposal to sack central bank governor Mustafa Kamel Nabli who had fallen out with the government over policy.

Parliament's approval came after ruling coaltion parties proposed removing Nabli in May. Tunisia, struggling to emerge from recession, has held a steady course on inflation, interest and exchange rates even in the turmoil that followed the ousting of its president, but firing Nabli suggests it may be hard to hold that line. Tensions have emerged in the past few months between the government and the central bank over who has the last say on monetary policy, unsettling investors already jittery after last year's revolution. The government unveiled a target for inflation and Nabli responded by saying this figure was set by the bank and that he would not accept political interference in its work.

Speaking before the vote, Nabli said: "The decision to sack me is designed to impose ... government control on the financial and banking sector." "The impeachment contradicts the principle of central bank independence," he said. About 110 parliamentarians in the 217-member assembly voted to remove Nabli.

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