Algeria Lost $ 8 Billion In 90 Days

Algeria lost nearly $ 8 billion of exchange reserves in a matter of three months, and is this a serious indicator given that the government already pledged that the reserve will not come down under $ 100 until 2019, a speech that came on the lips of the Prime Minister during his visit to the province of Saida (western Algeria).

Governor of the Bank of Algeria, Mohamed Loucal, said on Wednesday, during his presence at the Finance and Budget Committee at the National People’s Council, in the context of the discussion of the Finance Act 2017, that Algeria’s reserves of hard currency reached $121.9 billion, up to last September, after it was in the range of $129 billion on last June, reaching $144.1 billion by the end of 2015, adding that $121.9 billion would be sufficient only for 24 months.

Laksaci’s successor tried to send positive signals when he said that despite the decline in the exchange reserves, but the Finance Act procedures for the year 2017 are stimulus, and that will contribute to raising the rate of growth in the context of what he called “a new economic model”, which is pleaded by the government to make it a success, despite the non-disclosure of its articles and mechanisms.

With regard to exchange offices, the spokesman said they are premature and are not included in the agenda of the government works now, asserting that Algeria does not have well-developed tourism that makes it open exchange offices.

“There are priorities in the current period that are most important than the exchange offices, like the modernization of the banks and give flexibility of the monetary policy in Algeria”.

Head of the Bank of Algeria also ruled out the increase of tourism grant which currently stands at 115 Euros, and told the Congress Committee that the economic situation of the country does not allow it, considering that the opening of banks abroad will not be tomorrow.

A member of the Finance and Budget Committee at the National People’s Council, told Echorouk that the governor of the Bank of Algeria, during his response to the concerns of members of the Committee, said that the foreign debt is not a defect or a taboo, and the government can resort to it when needed.

For his part, Boualem Djebar, Chair of the Professional Association of Banks and Financial Institutions, said in a statement that the funding with loans ratio stood at 9% in the first six months of the current year, compared to the same period of last year, despite the financial crisis of the country.