1 Millime – Tunisia

In 1999, Tunisia's currency situation was characterized by a tightly managed exchange rate regime and a period of relative macroeconomic stability following a decade of significant structural adjustment. The Tunisian Dinar (TND) was, and remains, a non-convertible currency, with its value pegged to a basket of currencies heavily weighted toward the Euro (replacing the French Franc after 1999) and the US Dollar. This peg was administered by the Central Bank of Tunisia (BCT), which maintained strict capital controls to defend the exchange rate, limit speculative flows, and preserve foreign exchange reserves.

The economy in the late 1990s was transitioning from a focus on import-substitution industrialization toward greater export-orientation and integration into global markets. This period saw consistent but modest economic growth, supported by sectors like textiles, tourism, and phosphates. The managed dinar provided a measure of predictability for domestic businesses and foreign investors, helping to control inflation, which was kept at relatively low single digits. However, this stability came at a cost: the overvalued peg, estimated by some international institutions like the IMF, hurt the competitiveness of Tunisian exports and contributed to a persistent current account deficit.

Overall, the currency framework in 1999 represented a cautious, state-led approach to economic management. While it provided short-term stability and helped anchor prices, it also masked underlying structural challenges, including rigidities in the financial sector and the growing need for greater flexibility to absorb external shocks. The system maintained its core features into the 2000s, but the tensions it managed would later become more pronounced following the 2011 revolution and subsequent economic pressures.