Algerian Dinar devalued against the US Dollar

The current additional financial law has revealed that the Algerian economy has declined to 3.9% if compared to 4.1% growth recorded in 2008, while the inflation remained flat at 3.5%.

• Tallies forecast a drastic shrink of the Gross Domestic Product (GDP) at a level of $ 31.5 billions going down from $160.52 to $71.128 billions. This is the first financial crunch since 2001, confirming the Algerian economy’s deep dependence on hydrocarbons.
•  
• The report mentions clearly that the global financial crisis’ aftershocks are now felt by the Algerian economy, proven by the big losses recorded in the hydrocarbons exports which forced the Algerian authorities to devalue the Algerian currency against the US one in order to curb the imports and cushion the deficit.
•  
• The document explains that the current financial situation is completely different from the prevailing one during the preparation of the 2008 financial budget. This tendency was confirmed during the first semester of 2009 where the Algerian incomes retreated by 50% in comparison with the last year’s same period.
•  
• Still, the financial reserves remained stable at $ 140 billions while the commercial balance plummeted from $19.75 billions in the end of the previous year to $ 1 billion, due to the fall of oil prices from $ 110 to $ 52 a barrel.
•  
• For the first time ever, the Algerian authorities have announced the devaluation of the Algerian Dinar against the US Dollar to offset the losses. This move impacted directly the prices of the imported goods that witnessed an unprecedented hike especially food stuffs and equipment.
•