Algeria Collects $4.6 bln From Investing Foreign Exchange Reserves Abroad in 2010, Report

Algeria has collected $4.60 billion in 2010 from investing exchange reserves abroad, comparing to $4.74 billion in 2009, a report issued on Thursday by the Central Bank showed.

The Governor of the Central Bank, Mohammed Laksaci mentioned, in this regard, that 98 percent of investment operations of exchange reserves in the US and Europe were proceeded in the form of sovereign bonds portfolio, which Algeria has bought between 2004 and 2007 when the international interest rates were high. The performance of Algeria foreign exchange abroad estimated at $5.13billion in 2008, $3.8billion in 2007 and $2.42billion in 2006, the report shows.

The interest rate of the aforementioned bonds hit 3 percent in 2010, a bit lower than the rate recorded in 2008 and 2009, Mr Laksaci said, adding that Algeria exchange reserve was estimated at $162.2 billion in 2010, comparing to $148.9 billion in 2009.

He further mentioned that Algeria has invested only 2 percent of its foreign exchange reserve abroad, contrary to previous years when the North African country used to invest up to 20 percent of its reserves.