Algeria fails in exploiting foreign exchange reserves to reach real development, says expert

The best way to use Algeria’s Foreign exchange reserves estimated at $155 billion is to buy gold as they can not be exploited locally in funding real development projects in the country, according to an economist.

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  “The use of current reserves in funding the national economy requires correcting malfunctioning in the national economic system,” Abderrahmane Toumi told Echorouk.

  He stressed the necessity of developing banking system, building real national capacities for achievement, fighting bureaucracy and corruption and developing investment culture of national banks.

  Earlier, Algerian former trade minister Abdelhamid Temmar said the government would recover Algeria’s foreign exchange reserves abroad. He also said the use of those huge sums abroad did not have any economic feasibility due to the global crisis.

  The expert believes that the government should review current governance rules in order to use its financial resources well. Economic decision making centres should also be revised to use the country’s resources and launch real development.

  Analyses stress the necessity of revising financial resources use conditions in the country. Institutions in charge of managing the resources should also be reviewed.  
  

  Algeria’s real problem is not money. It is the absence of real experienced competences capable of using all the financial resources reasonably”.