Algeria loses 60 percent of its incomes and consumes $16 billion of its reserves

The Algeria Bank’s commissioner Mohamed Laksassi Thursdays said the country’s financial situation helped to reduce foreign shock effect. He warned against the weakness of this situation flexibility if the shock continues. Algeria’s incomes decreased due to oil price fall by 60 percent. It consumed $16 billion of its exchange reserve while imported goods cost $62 billion to the Public Treasury. These indicators will weaken Algerian economy in terms of resisting foreign shock, according to Laksassi.

The commissioner said the weak level of Algeria’s hydrocarbons and banks debt in terms of foreign currency helped to reduce foreign shock financial consequences.

“If the foreign shock continues, Algeria’s foreign situation flexibility will be hit fast as importing bill is on the rise,” he added.

Algeria’s exchange reserves decrease compared to the first semester of 2014. Increasing imports and decreasing exports caused a big reduction of commercial surplus. It reached $0.59 billion only by the end of 2014 compared to $9.73 billion in 2013.