Algeria: Traders And Businessmen Rush To Purchase Hard Currency

date 2017/09/10 views 1168 comments 0

icon-writer Imène Kimouche /*/ English Version: Med.B.

The exchange rate of the Euro again soared yesterday at the informal hard currency market located in the Port Said square in downtown Algiers, as well as in other provinces of the country, by reaching about 192 dinars, while the price of the US Dollar stood at 164 dinars.

This new about-turn came hours after the Government announced a new financial plan involving the Ministry of Finance and the Bank of Algeria, which is based on the printing of an additional amount of banknotes  at a time when the informal market, according to cashiers, is witnessing a large demand, after the end of the pilgrimage season, which led to higher prices marked by the decline for 10 days to less than 189 dinars for a Euro.

The exchange rate of the Euro yesterday at the informal market was set at 191.64 dinars until midday to reach later 192 dinars, while the exchange rate for a US Dollar reached 164 dinars, and traders in the market attributed this rise was due to the sudden increase in demand by customers during the last hours for the euro and the dollar, stressing that the informal market is not subject to what is being adopted by the Bank of Algeria in its procedures or interactions.

According to financial expert Kamel Razak in a statement to "Echorouk", the value of the dinar has seen a further deterioration in the informal market during the past two days as a result of increased demand for hard currency by traders and importers, who consider that the hard currency has become a safe haven to hoard money.

He surmised that what they eat today in dinars may not be worth half of it tomorrow, while the value of the euro and the dollar remains high compared to the national currency, as well as for gold and real estate, which they expect to see also to secure a large turnout by citizens, especially on the part of capital owners.

The financial expert further criticized the decision taken by the Government, announced two days ago, instructing the Central Bank to print an additional amount of money and to inject it into the market, stressing that this action is perilous, and can have negative repercussions during the next phase.

The value of the Euro in the informal market reached in two years 400 dinars, which he described as "catastrophic" for the national currency, as the Central Bank also reduced its value by 20 percent in 2017.

He added that this decision was taken because the Government was compelled to find urgent solutions to finance the Public Treasury and dormant projects, in the light of the woeful financial situation now gripping the country, marked by the depletion of the resources of the Income Control Fund as well as the erosion of external hard currency revenues in addition to the lack of confidence among citizens towards the financial institutions and banks, amid the worsening of the world oil crisis.

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