Tunisian cabinet approves bill to modernise foreign exchange

TUNIS, March 14 (Reuters) - Tunisia's cabinet on Thursday approved a new foreign exchange bill saying it would ease international financial and business dealings, a reform demanded by Tunisian and local firms.

"The new exchange bill is considered a legislative revolution and a historical shift in the field of exchange and finance in Tunisia," the government said in a statement.

Investors currently must get central bank approval to access hard currency to fund operations abroad, or obtain credit letters to import goods. The central bank issues approval on a case-by-case basis, a process some firms say is opaque and overly bureaucratic.

The central bank has sought to limit access to hard currency to stem a fall in the dinar since the toppling of autocrat Zine El Abidine Ben Ali in 2011 left Tunisia's economy in crisis.

Tunisian banks are unable to issue credit cards for Tunisians who work abroad and foreigners in Tunisia also face restrictions in making bank transfers abroad unless they register as an offshore entity, which allows them privileges.

The government said that it aims, through the bill, to improve the business climate, raise exports and improve competitiveness.

It added that it would allow the gradual liberalization of financial exchanges, which would enhance growth.

The new project includes solving problems facing resident and non-resident Tunisians and foreigners related to currency possession and opening accounts in foreign currency, the government added without giving more details.

Tunisian residents now have no right to open accounts in foreign currency, even if the money comes from a foreign firm that employs Tunisians in Tunisia.

Tunisian law currently criminalises citizens who own money in foreign currency without proving its source. It also prevents ordinary Tunisians from transferring tourism and travel funds of more than 6000 dinars ($1,941) each year.

The project law is expected to be presented to parliament for approval in the coming weeks. ($1 = 3.0900 Tunisian dinars) (Reporting by Tarek Amara; Editing by Andrea Ricci)