Algeria: The Euro Currency Surges Upward On Informal Market

The Euro is slightly plummeting on world markets. But not on the informal market in Algeria. In the Port Said Square, in Algiers, the main “stock market” of the black currency market in the central region of the country, the single European currency has surpassed the psychological threshold of 190 dinars for one euro.

At this pace, informal traders predict that 100 Euros could be exchanged in a few days against 2,000 Dinars.

At the end of last week, the Dinar was at the lowest in Port Said square in Algiers. The euro, the most popular hard currency in Algeria, was bought at 187 dinars. On this first day of the week, it climbed and shifted to more than 196 dinars. According to “traders”, several causes are at the origin of this new upward trend. In particular, the increase in religious stays in the Holy Places of Islam (Umrah or small pilgrimage), or the refuge value …

According to the Bank of Algeria, it was rated 117 dinars at the official market. In fact, the “tourist allowance” currently set at 115 Euros for Algerians wishing to travel abroad has not been increased by the authorities. This sum is considered “derisory” by all observers.

It has been pointed out that many economic operators resort to it systematically and cause exchange rate tensions. “Among our costumers, there are not only small applicants”, informal traders at the Port Said Square told Echorouk reporters.

Large currency consumers, including importers and businessmen, often solicit the informal market to pay cash for their purchases of products. When a spectacular rise in foreign exchange occurs, it should be construed that large buyers have placed important orders,” explains a Forex trader.

Curiously enough, a currency trader on the spot was asked, what are the real reasons for this steep hike in foreign currency exchange, he replied: “If you think it is because of Umrah and the departures on summer vacations that are at the origin of these increases, I personally don’t think so”.

“It is not possible that these factors spawn such a soaring currency trend. I guess that large importers are always at the origin of any change in the exchange rate,” he said.

In addition, the Pound Sterling and the Dollar rose also sharply in the informal market of Port Said Square.

This week, a Pound Sterling was being traded against 220 DA and it was selling at 217 DA, while the Dollar reached the rating of 178 dinars.

Observers explain this new reversal by the surge of all major foreign currencies against the depreciated Dinar, in the official quotations of the Bank of Algeria.