The Euro has rebounded in the informal hard currency market in Algeria due to a sudden increase in demand for the foreign currency over the last two days.
Informal traders working in the market for the exchange of foreign currency spoke to “Echorouk” of a sudden hike in the purchase of hard currency, especially the Euro as from Monday evening, and this new development has had immediate repercussions on the exchange rate of the unified European currency.
According to the same testimony, the exchange rate of 100 Euros on Monday night to Tuesday was set at 21 thousand and 200 dinars, a price close to that recorded last week, before the surprise “earthquake” that hit the black currency exchange market, when the Euro was in the range of 20 thousand and 400 to 500 Dinars.
On Tuesday, the exchange rate of one hundred Euros was set at 20 thousand and 500 dinars for sale, and 20 thousand dinars for purchase, because the demand for the green banknote is still rather weak and fluctuating, according to statements made by a number of informal currency market traders at the much-frequented Port Said Square in downtown Algiers.
The informal foreign currency exchange, especially concerning the Euro and the Dollar, has been volatile for more than a week now with prices dropping frequently, sometimes reaching up to 5,000 dinars.
Observers have linked the dwindling exchange rates of hard currency in the informal market in recent days to the imprisonment of a number of prominent officials and businessmen from the era of ousted President Abdelaziz Bouteflika, who used to buy very large amounts of hard currency from the black market and their imprisonment touched off a drop in demand for hard currencies and thereby the ensuing collapse of prices.