Algeria: Twelve Billion Centimes Vanished Within 3 Years

By the end of last year, Algeria consumed over the last 48 months from the overall $ 120 billion in its coffers, at least between savings and revenue reserves of hard currency exchange, an alarming figure equivalent to 12 thousand billion dinars, or 12 billion centimes.

After 3 years from the outbreak of the oil crisis, the month of June 2014, the Algerians have discovered that the country’s economy has been transformed into an awesome machine to devour billions of dollars that were stacked in the exchange reserves and the revenue regulation Fund.

Worse, the bulk of the money which went to finance imports, have not benefited the country and its citizens in establishing a genuine productive economy, according to experts and observers.

As a remedial measure, Sellal’s government is said to be intent on further clamping down on imports in a bid to give a new impetus to the national economy by showcasing the merits of locally-manufactured products on the national market.

According to  Echorouk’s sources, an extended non-import list will contain a number of industrial and agricultural products, in particular those that are likely to compete with locally manufactured products, such as household appliances, electronics and some building materials like marble, ceramics, tiles … etc.

The proposals of the joint committee in charge of monitoring foreign trade also concern the reduction of the quantitative quota for imports of vehicles to just 50,000 units and the ban on the import of certain types of fertilizers and consumer products including cheeses, chocolates and cakes.

This comes at a time when the government has made clear its determination to rationalize spending and to slash the country’s import bill, especially since the revenue-raising fund (RRF) and foreign exchange reserves are seriously affected by the steady fall in the price of oil on the world market.

The head of the Executive branch assured that the government will ensure that Algeria’s foreign exchange reserves do not drop below $ 100 billion dollars by the year 2019.

Given the measures taken by the government to curtail the country’s enormous import bill, it is questionable whether these remedial mechanisms can withstand the growing demand of Algerian households, especially given that all indicators suggest that the national product is far from fulfilling the increasing needs of the national market.