5 Millimes – Tunisia

In 1997, Tunisia's currency situation was characterized by a period of cautious stability and gradual liberalization under a managed exchange rate regime. The Tunisian dinar (TND) was not freely convertible and its value was set against a basket of currencies of the country's major trading partners, primarily weighted toward the French franc and the US dollar. This system, administered by the Central Bank of Tunisia (BCT), aimed to maintain export competitiveness and control inflation, which had been successfully tamed after the economic turbulence of the 1980s.

The year fell within a broader context of structural adjustment programs agreed upon with the International Monetary Fund (IMF) and the World Bank, which encouraged a slow shift from a heavily regulated economy toward greater market orientation. As part of this, Tunisia was progressing with a phased approach to current account convertibility, having introduced a limited foreign exchange market (the "market for convertible dinars") for commercial banks in 1994. However, capital controls remained strict, and the dinar's exchange rate saw only minor, controlled adjustments, reflecting the government's priority of macroeconomic stability over rapid liberalization.

Economically, 1997 was a year of solid growth, bolstered by strong agricultural output and a growing manufacturing sector, particularly in textiles and electronics for export. This performance, coupled with prudent fiscal management, provided a favorable backdrop for the currency's stability. The managed dinar helped control import costs and provided predictability for businesses, but it also signaled the ongoing constraints of a system that would face future pressures for greater flexibility as Tunisia further integrated into the global economy.