100 Euros Reaches 20.000 DZD In Algiers Parallel Market

Black Market of Euro exchange reaches 20.000 DZD/100 Euros, exceeding all the red lines, which was descried by experts as an initial rise, which is expected to increase dangerously during the next phase, with the same level of printing funds that was announced by the government weeks ago.

Experts assert that this decision caused a proactive campaign by traders and businessmen to store their savings of money in the form of hard currency, which has recently inflamed prices.

An expert at the World Bank, Mohamed Hamidouche, told Echorouk that the rise in the price of the euro on the black market will increase further during the next phase, and will exceed 20.000 DZD per 100 Euros, once a large amount of dinar will be pumped in the market by the Central Bank, which will buy bonds of the public treasury.

“Black market will be dominated by supply and demand, and traders’ demand for huge amounts of euros over the past few days, in anticipation of the government’s decision to raise the price of the euro in such a terrible way”.

The expert warned of a serious rise in the level of inflation during the next phase, as the central bank will print additional amounts of funds, which will be injected into the services sector, which devours 50% of the cash mass, while the owners of capital will resort to safe havens to store their money for fear of deterioration of the value of the dinar, which are represented in gold, hard currency, real estate and houses, which will necessarily lead to an unprecedented rise in the prices of these four varieties.

“The increase in the amount of money means that the government’s ability to pay the wages of workers, but does not necessarily mean the ability to raise the standard of living or the purchasing power of Algerians, which will reduce the real value of wages, compared to the level of inflation, which will know the upward trend. The situation will be worse for the dinar during the next phase and calling for urgent solutions”.