Economy of Tunisia
The Tunisian government adopted a unified investment code in 1993 to attract foreign capital. More than 1,600 export-oriented joint venture firms operate in Tunisia to take advantage of relatively low labor costs and preferential access to nearby European markets. Economic links are closest with European countries, which dominate Tunisia's trade. Tunisia's currency, the dinar, is not traded outside Tunisia. However, partial convertibility exists for bona fide commercial and investment transaction. Certain restrictions still limit operations carried out by Tunisian residents.
Tunisian bread riots
The European economy in 1983 had been stagnant for some years. This had affected Tunisia since its economy relied on exports to Europe and tourists from Europe. The government was struggling to meet rising expenses when a fall in the price of oil towards the end of 1983 further reduced revenue. President Bourguiba agreed to seek a loan from the International Monetary Fund (IMF). The IMF loan was conditional on government spending cuts, removal of exchange controls, elimination of protective tariffs and devaluation of the currency.