Algeria Not Worried About Foreign Reserves Deposited Abroad, Djoudi

Algeria has no reason to worry about the impacts of the US debt crisis on its “secured” foreign exchange reserves, Minister of Finance,Karim Djoudi, said on Saturday.

APS news agency has quoted Mr Karim Djoudi as saying that “Algeria deposits abroad are secured for they are guaranteed and protected capitals, and also liquid funds which permit us withdrawing them at any time.”

However, the Minister has avoided revealing the value of Algeria foreign exchange reserves deposited abroad, including in the US. He has just affirmed that their interest rate is estimated at 3 percent, which covers the high inflation rates hitting the US economy.

Mr Djoudi further added that the government has opted for investing part of its reserves as state bonds, which risk is low, to guarantee “maximum” protection to reserves managed by the Central Bank of Algeria.  

He specified that “the exchange reserve is the amount of the mass of money reconverted into the dinar currency,” adding that “each dollar entering to the national economy is converted into dinar, part of which is destined to government tax fund, to contribute covering public expending, while another part is deposited in banks.

Mr Djoudi said that all the reconverted reserves are destined as expenditures to the national community, institutions and families, while 40 billion USD is reserved, annually, to cover import bill.