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Tunisian Dinar

Exchange Rate Mechanics

How is the Tunisian dinar priced vs USD & EUR?

This interactive explainer shows the main forces that move the exchange rate: inflation, interest rates, trade balance, reserves, and confidence. It is educational (not a forecast).

Baseline (editable)
USD/TND
EUR/TND

Move the drivers

Higher “pressure” means a tendency for the TND to weaken (more TND per USD/EUR). Lower pressure means support for the TND.

0

If Tunisia’s inflation is higher than the US/EU, the dinar tends to depreciate over time (purchasing power parity).

Higher local rates can support the currency (attract dinar demand), but only if inflation and risk are controlled.

A deficit means the country needs foreign currency (imports, debt service) more than it earns (exports, tourism).

More reserves give the central bank room to smooth volatility and meet FX demand (imports, debt).

Political risk, debt worries, and capital controls raise demand for hard currency and can weaken the dinar.

What this implies (simple model)

A simplified “pressure index” converts your inputs into an estimated % move for USD/TND and EUR/TND.

Implied move
0.0%
(per year, educational)
USD/TND
3.20
EUR/TND
3.50
Interpretation

Mechanics in plain language

The exchange rate is the price of foreign currency (USD/EUR) in dinars. It moves when demand for USD/EUR changes relative to supply.

Supply comes from exports, tourism, remittances, and foreign investment. Demand comes from imports, debt repayment, and capital outflows.

The central bank can smooth volatility using reserves and policy, but it cannot permanently fix a rate that contradicts inflation, trade balance, and confidence.

Formulas used in this tool

Inflation differential
Δπ = π_TN − π_Partners
Interest rate differential
Δi = i_TN − i_Partners
Current account balance
CA = (Exports + Tourism + Remittances) − (Imports + FX Debt Service)
Reserves index
R ∈ [0, 100] (higher = stronger buffer)
Risk premium index
RP ∈ [0, 100] (higher = more pressure)
Pressure index (educational)
P = 0.9·Δπ − 0.35·Δi + 0.35·(−CAD) − 0.05·(R−50) + 0.08·(RP−50)

Important

This tool is an educational explainer, not investment advice or an official forecast.

Real FX rates also depend on market microstructure, regulation, liquidity, and expectations.