Tunisian Dinar

History

Its name derives from the Latin denarius aureus which means gold coin and which indicates in the beginning a Roman Monnaie, having a value of 10 ace, which is employed as equivalent solidus (Byzantine currency that the Arab know before the advent of the Islam). After the conquest of the Syria, the Arabs, not having their own currency, continue to use in their commercial transactions the Byzantine solidus. Later, they strike imitations. It is only under the reign of the Caliph omeyyade Abd Al-Malik, in the year 77 of the hégire (696 - 697), that they strike finally the first Dinar. It is then epigraphic and removes any figurative representation.

Parts

In 1960, parts in Aluminum of 1,2 and 5 millimes and parts in Brass of 10,20,50 and 100 millimes are introduced. The parts of 1 and 2 millimes are not emitted any more thereafter and they are seldom met. In 1968, parts in Nickel being worth ½ dinar are introduced then replaced by smaller parts in Cupronickel in 1976 whereas parts of 1 dinar out of cupronickel are introduced. Parts of 5 dinars mixing two metals are introduced in 2002. The various parts emitted since 1960 carry the following values:

1 millime (1960)
2 millimes (1960)
5 millimes (1960 -)
10 millimes (1960 -)
20 millimes (1960 -)
50 millimes (1960 -)
100 millimes (1960 -)
½ dinar (1968 -)
1 dinar (1976 -)
5 dinars (2002 -)

Tickets

The various tickets issued since 1960 carry the following values:

½ dinar (1960-1973)
1 dinar (1960-1980)
5 dinars (1960-1993)
10 dinars (1969 -)
20 dinars (1980 -)
30 dinars (1997 -)

Evolution of foreign exchange rate

In comparison with the 2 last decades evolution, the depreciation of the dinar tends to take a structural dimension and to confer the statute of soft currency to him. According to statistics of the Central bank of Tunisia (BCT) of 2005, the dinar is depreciated at faster intervals with respect to the principal currencies of debt and Investissement of the country: the euro and the dollar. Compared to the euro, the dinar was depreciated of 1,3% (passing from 1,590 to 1,611 dinar for one euro). This tendency to depreciation accelerated in 2006 (1,677 dinar). Since 2001, the dinar thus depreciated at average intervals of 5% per annum with a point of 8,6% in 2003 and a fall of 4,1% in 2005. This depreciation is perceptible through the increasing rise in the prices of the “popular” cars imported in euro. Compared to the dollar, the dinar was depreciated at intervals much faster (- 9,6%). Its course passed from 1,229 dinar to 1,359 dinar for a dollar. In 2006, the dollar is exchanged on average against 1,305 dinar.

The observers, such as the French economic mission in Tunisia, explain “this acceleration of the fall of the international value of the dinar by a will of the BCT to preserve the market shares of the country in the International business”. Thus, they put in the active of this policy of exchange the “good resistance” of the Exportation S of the sector Textile. Because the depreciation of the dinar promotes exports by improving to them competitiveness.

For memory, the dinar did not cease dropping since the beginning of the Années 1980. Of 1983 with 1991, the nominal Foreign exchange rate effective of the dinar knows one period of depreciation of a little less than 5% per annum. Contrary, throughout the Years 1990, the real effective foreign exchange rate of the dinar remained much more stable with an average depreciation from approximately 1% per annum.

Restrictions

The Importation or the Exportation of dinars is an offense in Tunisia. Not more: 1000 dinars can be converted into foreign currency before leaving the country. With the stores out-tax, the prices are thus in convertible currencies like the Euro, the American dollar or the Pound sterling. For the tourists, there exists much of automated tellers making it possible to convert the foreign currencies into dinars. By leaving the country, it is necessary to declare the money in its possession if it exceeds the equivalent of 500 pounds sterling.

References

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