TUNIS(Reuters) - Tunisia's government will allow Tunisians to hold foreign currency accounts locally and introduce an amnesty for illegal foreign currency trading as it tries to boost foreign reserves, Prime Minister Youssef Chahed said on Monday.

Chahed told parliament that the government planned to reduce its budget deficit to 3 percent by 2020 and expected growth of 5 percent that year according to its new economic plan. Officials expect a deficit of 6 percent this year.

(Reporting by Tarek Amara; writing by Patrick Markey) ((pat.markey@thomsonreuters.com; +201069699524; Reuters Messaging: pat.markey.thomsonreuters.com@reuters.net))