According to the figures of Finance Minister, Mohamed Loukal, on the level of Algerian reserves, which decreased by the end of April to $ 72 billion, as the regime of the former President Abdelaziz Bouteflika, or what became known as the “mafia” is the cause of making Algeria lose $ 177 billion in five years, if we count the savings of the fund of controlling the revenues that have exhausted sharply, and it is remarkable that these terrible amounts of money are lost and are irreversible.
Finance Minister, Mohamed Loukal, said in an interview with APS that the level of exchange reserves reached $ 72.6 billion at the end of last April, down from $ 79.88 billion at the end of 2018, meaning that Algeria lost more than $ 7 billion in the first four months of that year.
A simple analysis of exchange reserves data reached the highest level in June 2014, when it exceeded $ 194 billion. With the beginning of the oil crisis, reserves started to shrink rapidly, reaching $ 72 billion dollars at the end of last April.
In a calculation, it is clear that Algeria lost a total of $ 122 billion in exchange reserves within five years (between June 2014 and April 2019), or in other words during the Mafia rule in the country under the Bouteflika regime, whose prominent faces were imprisoned including the former Prime Ministers, Ahmed Ouyahia and Abdelmalek Sallal, and ministers and businessmen who are close to the outgoing president’s circle.
In addition to depleting the exchange reserves in the import economy, the Mafia lost $ 55 billion to Algeria from the savings of the fund for controlling revenues that were available by the end of 2014 but was fully exhausted in 2017.
Calculating Algeria’s loss from the reserves and the revenue control fund, the losses in 5 years reach $ 177 billion.
According to observers, the Algerian exchange reserves will not rise again only with a barrel of oil reaching more than $ 92, which is unlikely in the medium term at least in light of the oversupply and remarkable rise of US production of shale oil.
The rise in exchange reserves is also unlikely given the government’s marketing of non-hydrocarbon exports since the beginning of the 2014 oil crisis. Now that Bouteflika’s regime has gone, its successive governments and officials are unable to go beyond $ 2.8 billion of non-oil and gas exports, and even a large part of the $ 2.8 billion which was exported last year outside fuel is a gas conversion and exporting it in the form of fertilizers.
According to the new data that were provided by Loukal on exchange reserves, it covers only 24 months of imports (two years), meaning that the Mafia’s bad impact on the country’s economy will extend for years to come, and will intensify in 2021 if the national economy will continue at this pace.