Political sketch
Formerly Tunis. Independent from France on 20 March 1956.
Tunisia's modern history may be said to begin in the 1800s. It was an Ottoman territory, but as Ottoman power declined, France, Italy , and the United Kingdom all coveted it. For a while their conflicting interests helped Tunisia remain autonomous, but in 1881, the British occupied Cyprus and in return allowed the French to make Tunisia a protectorate. The beys (rulers) of Tunisia became figureheads. In the early 1900s Tunisians began to demand more participation in government. During the Second World War, Tunisia was a battleground in the North African campaign of German and Italian forces against British and U.S. forces. Unlike French colonies south of the Sahara, Tunisia did not join the French Union after the war.
Tunisia became independent from France on 20 March 1956. Its first president Habib Bourgiba, ruled initially as a fairly benevolent despot. Economic development proceeded and some social reforms occurred, particularly improving the status of women. Over time dissatisfaction with Bourgiba grew, and he was removed from office in 1987. His successor, Zine El-Abidine Ben Ali, is still in power today (2005). Ben Ali has gradually reduced government involvement in the economy and taken some steps toward more democratic government, although Tunisia remains an autocracy. Tunisia has a diversified economy and its exports include manufactures, mining, and agricultural products.
Wars since 1500
Spanish Conquests in North Africa, 1505-1511; Second World War in North Africa, 1942-1943 (United Kingdom, United States, and Free French forces against Germany, Italy, and Vichy French forces).
Convertibility
The French franc zone:
When the First World War began, France imposed a moratorium of payments on all negotiable instruments starting 1 August 1914. The moratorium was subsequently extended by decrees until 1 March 1915. The central bank, the Bank of France, abandoned the gold standard on 5 August 1914, although no official prohibition on exporting gold existed until by a decree of 3 July 1915, affirmed by a law of 15 November 1915. A decree of 2 April 1918 prohibited capital exports without authorization. A law of 25 June 1928 officially restored the gold standard and repealed exchange controls. When the French franc was an object of currency speculation , a law of 13 August 1936 imposed extensive exchange controls, supplementing some lesser measures that had been implemented in 1935.
France imposed exchange controls on 9 September 1939 by a decree of that date, soon after the Second World War broke out. On 20 May 1940, capital controls within the franc zone were greatly relaxed by a French decree of that date. Exchanges between France and its African colonies were cut off from the time of the Allied invasion of French Morocco and Algeria in November 1942 to about September 1944, by which time the Allies had liberated Paris and the main French port cities. Exchange controls within the franc zone were not removed until 6 June 1946. Afterwards, French colonial francs became convertible both for current- and capital-account transactions within the French franc zone (France, Monaco, and French possessions, including countries using the CFA franc). Outside the French franc zone it became convertible for current-account transactions when France resumed current-account convertibility, but it was not convertible for capital-account transactions. France had multiple exchange rates from 26 January 1948 until 17 October 1948, and a dual exchange rate from 18 October 1948 to 29 September 1949. On 20 September 1949 it devalued the French franc and unified the exchange rate, taking advantage of the lead offered by the United Kingdom, which had devalued the pound sterling on 18 September 1949.
Tunisia alone:
Tunisia announced on 29 December 1958 that it would leave the French franc zone, and payments to countries in the zone became subject to exchange controls on 14 January 1959, requiring prior approval by the central bank (IMF ARER 1959: 295).
Other
Defaults on or restructurings of debt to the private sector (mainly from Purcell and Kaufman 1993 and Standard & Poor's 2004): 1867-1870 (foreign currency bank debt).
Banking crises (data since 1970s mainly from Caprio and Klingebiel 1999 and Frydl 1999): Minor problems 1991-1995, when at the start most banks were undercapitalized.
Frankel and Rose (1996) list of currency crashes: None.
References
Primary sources:
--Laws and decrees:
France. Gazette. 1762-present. Gazette de France (1762-1789); Gazette nationale de France (1789-1799); Bulletin des lois (1791-1831; a separate publication); La gazette nationale ou le moniteur universel (1799-1810); Moniteur universel (1811-1848); Moniteur universel: journal officiel de la République française (1848-1852); Journal officiel de l'Empire français (1852-1870); Journal officiel de la République française (1871-1941); Journal officiel de l'État français (Vichy France, 1941-1944); Bulletin officiel des Forces françaises libres (Free France, 1940-1941); Journal officiel de la France libre (Free France, 1941); Journal officiel de la France combattante (Free France, 1941-1943); Journal officiel du Haut commissariat de France en Afrique (Free France, 1943); Journal officiel du Commandement en chef français en Afrique (Free France, 1943); Journal officiel de la République française (Free France, 1943-1944; France, 1944-present). Paris (1762-1940, 1944-present); Vichy (1940-1944); London (Free France, 1941-1943); Algiers (Free France, 1943-1944): Imprimerie des Journaux Officiels (1944?-present). Many issues are in France, Legifrance Web site (see below).
France. Legifrance Web site, <http://www.legifrance.gouv.fr>. Reference site for French treaties, laws, and decrees, including the full text for recent items.
France. Overseas gazette. 1887-1961. Bulletin officiel (1887-1953; new series, 1953-1959); Bulletin officiel de l'administration provisoire des services du Ministère de la France d'Outre-Mer (1959-1961). Issued by Ministère des Colonies (1887-1950); Ministère de la France d'Outre-Mer (1950-1961). Paris: Imprimerie Nationale.
Tunisia. Gazette. 1883-present. Journal officiel tunisien (1883-1957); Al-r'id al-rasm lil-Jumhr yah al-Tnis yah (French title Journal officiel de la République tunisienne) (1957-present). Tunis: Imprimerie Officielle (1883?-1956) Imprimerie Officielle de la République Tunisienne (1956-present).
--Publications of monetary authorities:
Bank al-Markaz al-Tnis (Banque Centrale de Tunisie, Central Bank of Tunisia). Annual report. 19581959-present. Rapport d'activité (1958/1959-1993; cover said Rapport annuel from 1990 or so onward); Rapport annuel (1994-present). English version Annual Report (1995-present). Tunis: Bank al-Markaz al-Tnis (Banque Centrale de Tunisie, Central Bank of Tunisia).
Bank al-Markaz al-Tnis (Banque Centrale de Tunisie, Central Bank of Tunisia). Bulletin. 1959-present. Bulletin (1959-1996?); Péeriodique de conjoncture (1997-present). English version The Economic Situation Periodical (1998-present). Tunis: Bank al-Markaz al-Tnis (Banque Centrale de Tunisie, Central Bank of Tunisia).
Banque de l'Algérie. Annual report. 1852-1947, 1958-1962. Compte rendu de l'exercise. Paris: Banque de l'Algérie. (The bank was called the Banque de l'Algérie et de la Tunisie for about a decade; see its annual report listed separately below.)
Banque de l'Algérie. Bulletin. 1958-1962. Bulletin d'information.. Paris: Banque de l'Algérie. (The bank was called the Banque de l'Algérie et de la Tunisie for about a decade; see its annual report listed separately below.)
Banque de l'Algérie et de la Tunisie. Annual report. 1948-1957. Compte rendu de l'exercise .... Paris: Banque de l'Algérie et de la Tunisie. (Before and after this period, the bank was called simply the Banque de l'Algérie.)
Banque de l'Algérie et de la Tunisie. Bulletin. 1950-1958. Bulletin d'information. Paris: Banque de l'Algérie et de la Tunisie. (Both before and after this period, the bank was called simply the Banque de l'Algérie.)
--Web site of the current monetary authority (viewed 20 September 2005):
<http://www.bct.gov.tn>
--Other publications or Web sites:
Comité Monétaire de la Zone Franc. Secrétariat. 1953-present. Premier [etc.] rapport annuel du Comité de la zone franc établi en exécution du décret du 5 fevrier 1952 (art. 4, §2) (1953-1956); La zone franc en 1957: cinquième rapport annuel du Comité Monétaire de la Zone Franc (1957); La zone franc en ...: rapport publié par le Secrétariat du Comité Monétaire de la Zone Franc (1958-1983); La zone franc: rapport ...: publié par le Secrétariat du Comité Monétaire de la Zone Franc (1984-1991); La zone franc: rappport annuel ...; publié par le Secrétariat du Comité Monétaire de la Zone Franc (1992-2003; inside page says La zone franc en ...); Rapport annuel de la zone franc (2004-present; inside cover says La zone franc: rapport annuel ...). Paris: Imprimerie Nationale (1953-1956); Secrétariat du Comité Monétaire de la Zone Franc (1957-1991; 1957 is a mimeo with no explicit publication information); Banque de France (1992-present). Recent issues are available on the Web site of the Banque de France, <http://www.banque-france.fr/fr/eurosys/zonefr/zonefr.htm>.
France. Commision de Surveillance des Banques Coloniales. 1875-1939. Rapport au président de la république sur les opérations des banques coloniales d'émission pendant l'exercise ... (1873/1874-1936/1937); Rapport au président de la république sur les opérations des banques coloniales d'émission ... (1927/1929-1936/1937). Paris: Imprimerie Nationale.
IMF. International Monetary Fund. 1946-1971 (irregular). Schedule of Par Values. Washington: International Monetary Fund.
Main secondary sources:
Alaya, Hachemi. 1991. Monnaie et financement en Tunisie. Tunis: Cérès Productions: Centre d'Études, de Recherches et de Publications de l'Université de Droit, d'Économie et de Gestion, Tunis III.
Banque de l'Algérie et de la Tunisie. 1955. Cinquante ans au service de la Tunisie. (Présentation de Jacques Saint-Germain.) Paris: Banque de l'Algérie et de la Tunisie.
Baster, A[lbert] S[tephen] J[ames]. 1935. The International Banks. London: P. S. King and Son. (Concerns banks incorporated mainly in London that had branches outside the British Empire.)
Bistolfi, Robert. 1967. Structure économique et indépendance monétaire, l'expérience monétaire da la Tunisie et ses enseignements.... Paris: Cujas.
Ernest-Picard, Paul. 1930. La monnaie et le crédit en Algérie depuis 1830. Collection du centenaire de l'Algérie, part 2B. Institutions politiques et financières, no. 11. Algiers: J. Carbonel / Paris: Plon. (Contains some discussion of the operations of the Banque de l'Algérie in Tunisia.)
IMF ARER. 1950-present. International Monetary Fund. Annual Report on Exchange Restrictions (1950-1978), Annual Report on Exchange Arrangements and Exchange Restrictions (1979-1988), Exchange Arrangements and Exchange Restrictions: Annual Report (1989-present). Washington: International Monetary Fund. (Contains information on IMF member countries and some of their dependencies.)
Mottura, Paolo. 1972. The Banking System of Tunisia, 1956-1970. Milan: Cassa di Risparmio delle Provincie Lombarde.
Pamuk, evket. 2000. A Monetary History of the Ottoman Empire. Cambridge: Cambridge University Press.
Shafer, Neil, and Colin R. Bruce II. 2000. Standard Catalog of World Paper Money, Volume 2: General Issues, 9th edition. Iola, Wisconsin: Krause Publications.
World Currency Yearbook. 1984-1990/93. Brooklyn, New York: International Currency Analysis. Previously called Pick's Currency Yearbook (1955-1979) and Pick's World Currency Report (1980-84). New York: Pick Publishing Corporation.
Monetary authorities: Tunisia
| Dates | Type | Name | Source | Remarks |
| before September
1873
-mid 1904 |
dollarization | local coins; also notes of Banque de l'Algérie (headquarters Paris, France) starting 1881 or before | United Kingdom, London Bank of Tunis Ltd. articles of association, 1873, cited in Baster (1935: 116) | The Dar el-Mal (State Bank) (headquarters Tunis, Tunisia) apparently made an issue of 4% discounted notes in 1846 (see Shafer and Bruce 2000: 1097) but details are sketchy and I don not count it as an episode of circulating notes. A French bank was established in Tunis 1847 but only lasted briefly (Baster 1935: 113). The first bank to be durable was an Italian bank whose name and details are unknown to me. It was already operating without unofficial permission when the London Bank of Tunis Limited (headquarters London, England), opened in Tunis in September 1873, to become the second bank to be durable. It was founded by the Banque Ottoman Impériale (Ottoman Bank) (Baster 1935: 117). Coins had been minted in Tunisia since the late 400s BC; the first coins under French rule were issued in 1891. |
| mid 1904
-16 May 1946 |
private monopoly issue (as part of a currency union with Algeria) | Banque de l'Algérie (headquarters Paris, France) | Tunisia, decree of 8 January 1904, cited in Banque de l'Algérie et de la Tunisie (1955: 10); France, decree of 7 March 1904; Ernest-Picard (1930: 182) | The Banque de l'Algérie received authorization to establish a branch and issue notes for Tunisia also. The Tunisian issues were separately marked from the Algerian issues. During the First World War, the Tunisian government issued small-change notes (Tunisia, decree of 16 February 1918, cited in Mazard 1953: 93). |
| 17 May 1946
-3 November 1958 |
monetary institute (as part of a currency union with Algeria) | Banque de l'Algérie / Banque de l'Algérie et de la Tunisie from 12 January 1949 (headquarters for both Paris, France) | France, Law No. 46-1070, 17 May 1946; Law No. 49-49, 12 January 1949 | France nationalized the Banque de l'Algérie in accord with its policy after the Second World War to nationalize banks. Im accord with the terms of its charter renewal of 23 January 1948 with the French government, the Banque de l'Algérie became the Banque de l'Algérie et de la Tunisie (Mazard 1953: 93 n. 16). |
| 4 November 1958
-present (2005) |
central bank | Bank al-Markaz al-Tnis or Banque Centrale de Tunisie (Central Bank of Tunisia) (headquarters Tunis, Tunisia) | Tunisia, Law No. 58-90, 19 September 1958, reprinted in Banque de Tunisie Web site, viewed 24 October 2005; see also France, Ordonnance No. 58-1131, 25 November 1958 | Tunisia established a central bank soon after independence to satisfy nationalist sentiment. Tunisia joined the IMF on 14 April 1958. |
Exchange rate arrangements: Tunisia
| Dates | Official arrangement | Source | Unofficial arrangement, if different | Remarks |
| 23 October 1855
30 June 1891 |
fixed; 1 Tunis gold piastre = 2.7873g silver = 0.17716g gold | Tunis, decree of 23 October 1855, cited in Bank al-Markaz al-Tnis annual report 1958/1959: 47n. | The currency system was 1 Tunis piastre (silver) = 16 kharoubs = 40 paras. There were also gold coins. Sources seem to disagree on the gold parity. French francs circulated on the basis of 0.60 French francs = 1 Tunis piastre. There is an extensive earlier currency history not listed here because it belongs to the era before modern commercial banks and paper money. The piastre was named after the Spanish piastre, also known as the piece of eight or Spanish dollar. | |
| 1 July 1891
-6 May 1904 |
fixed; 1 Tunisian franc = 1 French franc | Tunisia, decree of 1 July 1891, cited in Mazard (1953: 93) | Tunisia established a decimalized local currency to make its currency uniform with that of France. The name "franc" for the currency came from the French franc. | |
| 7 May 1904
-1 May 1929 |
pegged (as part of a currency union with Algeria); 1 Tunisian franc = 1 French franc | Tunisia, decree of 7 May 1904, cited in Banque de l'Algérie et de la Tunisie (1955: 10) | The Banque de l'Algérie began issuing notes in Tunisia, so the exchange rate changed from fixed to pegged. | |
| 2 May 1929
-November 1942 |
pegged (as part of a currency union with Algeria); 1 Tunisian franc = 1 French franc = 0.05895g gold | Tunisia, law of 2 May 1929, cited in Mazard (1953: 94) | In practice, Tunisa remained on a French franc exchange standard. | Tunisia followed France's re-establishment of the gold standard almost a year earlier. The Italo-German occupation of Tunsia cut off transport links to Algeria from November 1942. The Banque de l'Algérie et de la Tunisie held some French notes as reserves, and it ciruclated them since it could not obtain supplies of its own notes from Algeria. After liberation in the next period, French notes were retired from circulation. Up to 2,000 francs per person could be exchanged freely, but any excess was deposited into blocked accounts pending inquiry of its source (Banque de l'Algérie et de la Tunisie 1955: 32). |
| November 1942
-2 February 1943 |
pegged (as part of a currency union with Algeria); 300 Tunisian francs = UKŁ1 and 50 Tunisian francs = US$1 | Mazard (1953: 106) | Switched to the pound sterling and US dollar as the anchor currencies following the Allied invasion of North Africa during the Second World War. These exchange rates, imposed unilaterally by the British and US invasion force, were a substantial depreciation from the prewar cross rates of 176.625 French francs = UKŁ1 and 43.80 French francs = US$1. The metropolitan French franc was still under the control of the Vichy regime. France, arrêté of 18 December 1945, for legal purposes declared the period of interruption of communications between France and its colonies as having lasted from 5 November 1942-31 December 1944. The name "franc" for the currency came from the French franc. | |
| 3 February 1943
-5 December 1944 |
pegged (as part of a currency union with Algeria); 200 Tunisian francs = UKŁ1, or 50 Tunisian francs = US$1 | Anglo-Free French agreement of 2 February 1943, cited in Mazard (1953: 106) | The Free French government persuaded the British and US governments to adopt exchange rates that represented much less of a devaluation than those they initially imposed when invading North Africa. The new rates applied also to local francs in other areas under the control of the Free French government, which by this time included almost all French colonies. | |
| 6 December 1944
-3 November 1958 |
pegged (as part of a currency union with Algeria); 1 Tunisian franc = 1 French franc | Anglo-Free French agreement of 8 February 1944, cited in Mazard (1953: 106) | RR: From January 1955, when data begin, parallel market premiums against the US dollar are nearly identical to those of the French franc, the anchor currency. (These data are for Algeria, with which Tunisia shared a currency union. RR do not list data for Tunisia until January 1960.) | Following the liberation of most of France by the Allies during the Second World War, the metropolitan French franc was devalued to the level of the overseas francs under Free French control (200 French francs = UKŁ1, or 50 French francs = US$1). Doing so in effect restored the French franc as the anchor currency. |
| 4 November 1958
-29 December 1958 |
pegged (as part of a currency union); 1 Tunisian dinar = 1,000 French francs, or 0.42 Tunisian dinar = US$1 | Tunisia, Law No. 58-109, 18 October 1958, reprinted in Banque de Tunisie Web site, viewed 24 October 2005; Bank al-Markaz al-Tnis annual report 1958/1959: 49 | RR: Parallel market premiums against the US dollar are nearly identical to those of the French franc. (Again, these data are for Algeria.) | Introduced a new currency at 1 Tunisian dinar = 1,000 Tunisian francs to emphasize a distinctive Arab identity, since the dinar was a longstanding monetary unit of Arab countries, as opposed to the franc, a unit of French origin. The Tunisian dinar was divided into 1,000 millimes. The law stated that the dinar was to be used as the sole unit of account from 1 November 1958. |
| 30 December 1958
-31 December 1959 |
pegged; 1 Tunisian dinar = 1,174.49 French francs = 2.11588g gold, or 0.42 Tunisian dinar = US$1 | Tunisia, law of 30 December 1958, cited in Bank al-Markaz al-Tnis annual report 1958/1959: 49; IMF ARER (1959: 293, 295) | RR: No parallel market data here. | This law defined the gold value of the Tunisian dinar. Tunisia did not follow the devaluation of the French franc on 27 December 1958. On 29 December 1958 it declared that it would leave the French franc zone. Payments to countries in the zone became subject to exchange controls on 14 January 1959, requiring prior approval by the central bank. |
| 1 January 1960
-27 September 1964 |
pegged; 1 Tunisian dinar = 1,174.49 old French francs = 11.7549 new French francs = 2.115880g gold, or 0.42 Tunisian dinar = US$1 | France, Ordonnance No. 58-1341, 27 December 1958; Ministry of Finance and Economic Affairs, Circulaire du 19 novembre 1959 relative au nouveau franc, 19 November 1959; Decree No. 59-1450, 22 December 1959 | RR: Parallel market data for Tunisia start with January 1960. The parallel makret premium peaked at 257% in May 1962 and was at least in high double digits thereafer. | France redenominated its franc at 1 new French franc = 100 old French francs. |
| 28 September 1964
-10 August 1969 |
pegged; 1 Tunisian dinar = 9.4039 French francs = US$1.90476 = 1.69271g gold | Bank al-Markaz al-Tnis annual report 1964: 50; IMF ARER (1965: 517, 523) | RR: Parallel market premium was 15-90%. | Tunisia liberalized some exchange controls and devalued. It also registered a gold parity with the IMF at the start of the period (IMF, 39th Schedule of Par Values, 15 April 1965: 5, 21).. |
| 11 August 1969
-31 March 1970 |
pegged; 1 Tunisian dinar = 10.579409 French francs = US$1.90476 = 1.69271g gold | IMF ARER (1970: 494) | RR: Parallel market premium in mid double digits. | Did not follow the devaluation of the French franc on 8 August 1969. |
| 1 April 1970
-26 August 1971 |
pegged; 1 Tunisian dinar = US$1.90476 = 1.69271g gold | IMF ARER (1971: 419-20 | RR: Parallel market premium falling during period, to single digits near the end. | The central bank ceased quoting exchange rates for the French franc and franc zone currencies that were pegged for long periods. |
| 27 August 1971
-20 December 1971 |
pegged; 1 Tunisian dinar = US$1.90476 = 1.69271g gold (nominally) | IMF ARER (1972: 425) | RR: Parallel market premium 10-14%. | Gold convertibility for all countries ended in practice when the United States abandoned the gold standard on 15 August 1971. |
| 21 December 1971
-15 February 1973 |
pegged; 1 Tunisian dinar = US$2.06803 = 1.69271g gold (nominally), or 0.483552 Tunisian dinar = US$1 | IMF ARER (1972: 425) | RR: Parallel market premium typically in teens but falling toward end of period. | Did not follow the devaluation of the US dollar against gold on 18 December 1971. |
| 16 February 1973
-22 January 1974 |
pegged; 0.435197 Tunisian dinar = US$1, or 1 Tunisian dinar = 1.69271g gold (nominally) | IMF ARER (1974: 434) | RR: Parallel market premium peaks at 40% in November 1973. | Did not follow the devaluation of the US dollar on 13 February 1973. |
| 23 January 1974
-31 March 1978 |
flexible basket; 1 Tunisian dinar = 1.69271g gold (nominally) | IMF ARER (1975: 474) | RR: Parallel market premium mostly in single digits. De facto crawling band around French franc. Band width of +/-2%. | Ceased quoting a temporarily pegged exchange rate of 0.094525 Tunisian dinar = 1 French franc after France ceased participation in the joint managed float [check table for France when done and see if this is how it is described] of the Western European "snake" and floated the French franc against all currencies on 19 January 1974. The composition of the basket was not disclosed. |
| 1 April 1978
-1986 |
flexible basket (IMF: other managed float from 1986) | International Monetary Fund, Board of Governors, Resolution No. 31-4, 30 April 1976 ("Second Amendment"); IMF ARER (1987: [page on otherm managed float]) | RR: Parallel market premium occasionally above 20%, but mostly in single digits. De facto crawling band around French franc with band width of +/-2%. | The system of gold par values officially ended by agreement of IMF members. The exchange rate was depreciated by 10% against the basket on 19 August 1986; in terms of the US dollar, the depreciation was from 0.777 to 0.86 Tunisian dinars = US$1 (World Currency Yearbook 1986-1987: 186). |
| 1986
-27 December? 1998 |
managed float | IMF ARER (1987: 495, 558) | In practice, still a
flexible basket to 31
January 1994? See
Remarks.
RR: Parallel market premium in low single digits to December 1998, when data end. De facto crawling band around French franc. Band width is /-2%. |
IMF ARER appendixes classified the exchange rate as a managed float, but the main text continued to mention a currency basket. On 1 February 1994 the central bank moved to a more flexible exchange rate, replacing daily central bank setting of exchange rates with an interbank market (IMF ARER 1995: 501). On 9 May 1997 the spread between the buying and selling rates on the interbank spot foreign-exchange market was liberalized and forward transactions were allowed (IMF ARER 1998: 917). |
| 28 December? 1998
-30 December 2000 |
crawling peg | IMF ARER (1999: 882, 891) | RR: De facto crawling band around French franc to 31 December 1998, to European euro from 1 January 1999. Band width is /-2% for both currencies. | The basis for the IMF reclassifying the exchange rate arrangement as a crawling peg may have been that on 28 December 1998 Tunisia created an Exchange Equalization Fund to cover foreign-exchange losses incurred by financial institutions when repaying foreign loans. The central bank targeted the real exchange rate. |
| 31 December 2000
-31 December 2001 |
managed float | IMF ARER (2001: 948) | RR: De facto crawling band to European euro to December 2001, when data end. Band width is /-2%. | The IMF reclassified the exchange rate arrangement. The central bank targeted the real exchange rate. |
| 1 January 2002
-2005 |
crawling peg | IMF ARER (2003: 997) | The IMF reclassified the exchange rate arrangement. The central bank targeted the real exchange rate. | |
| 2005
-present (2005) |
managed float | IMF ARER (2005: 972) | The IMF reclassified the exchange rate arrangement, without giving a precise date. (At the end of 1994 it was still calling the arrangement a crawling peg.) The central bank targeted the real exchange rate. The IMF's frequent changes of classification since 1998 seem to reflect uncertainty about how to fit the exchange rate arrangement within its scheme of classification rather than changes in the arrangement itself. |