Dinar Off, But Only Temporarily

February 2005 | Currency Forecast

The Tunisian dinar is subject to an independent float. Despite modest progress on exchange rate liberalisation, the currency only depreciated by 0.8% last year. Furthermore, amid a recent US dollar bounce, the dinar has weakened from TND1.2032/US$ to TND1.250/US$. Against a backdrop of continued greenback stability, we expect the dinar to remain near its current trading level for a few weeks yet. However, assuming a resurgence in the euro on the back of a continued difficult outlook for the US current account, we envisage the dinar resuming its firming trend against the US dollar over the three-month period. TND1.2000/US$ forms

If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.