Expert: “Dinar’s Decline Doesn’t Entail That The Algerian Economy Is Sick”

date 2017/07/10 views 505 comments 0

icon-writer Asma Bahlouli /*/ English Version: Med.B.

Financial and economic expert Abderrahmane Benkhalfa has predicted a renewed stability soon of the price of the Algerian currency the Dinar on the black market in the Port Said Square informal market in Algiers after the frenzied fluctuations witnessed by this currency over the past weeks.

He said that the decline of the Algerian dinar against the appreciation of the Euro and the Dollar in world markets does not mean at all that the Algerian economy is "sick" and this contingency cannot be linked in the event of a rise in economic recovery, stressing that the appreciation of the Dinar determines the extent of market dynamics.

And the increase in the flow of tourists to Algeria, which are all factors that will strengthen the value of the dinar, "adding that it is a market governed by supply and demand, and the more demand coincided with the seasons of Umrah, pilgrimage and summer holidays, in its value against the two most popular currencies the Euro and the Dollar.

"The Algerian Dinar is not the only one that is witnessing a decline and volatility. Even the two global currencies notably the Euro and the Dollar are witnessing a decline," he said. 

"There are many criteria that will determine the stability of the currencies in the world ... So the drop in value witnessed by the Dinar these days is a circumstantial change according to supply and demand and the keenness of Algerians to convert the Dinar currency," Mr Benkhalfa further noted.

It is known that the exchange rate of the Euro in the black market surpassed all indexes and reached 194 Dinars for the first time in 194 months, while the informal currency traders of Port Said Square in the capital Algiers attributed this hike to the summer season with a a large number of Algerians going on holiday abroad.

In contrast, experts however refuse to link the rise of the Euro and the Dollar on the black market with the global economic indicators, since the only factor controlling the stock market is supply and demand, with a large number of them stressing that the hike of the Euro versus the US dollar contributed to the upward appreciation of the European currency in the informal market.

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