Bank of Algeria Authorizes Withdrawal Of Hard Currency Funds Transferred From Overseas  

The Bank of Algeria on Thursday unveiled new procedures for the owners of bank accounts in hard currency in “Euros and Dollars”, in order to encourage Algerians to save and open new bank accounts, including dropping the question “Where did you get this?” in addition to granting freedom to withdraw money in hard currency or in Algerian dinars.

 The Algerian Government is thus seeking to raise the rate of savings in foreign currency, in the light of the woeful financial situation experienced by the country’s Public Treasury, especially after it realized that the nagging “bureaucratic” procedures followed by  some banks compelled a large number of Algerians to open banks accounts outside the country, notably in Tunisia and elsewhere.

 The Bank of Algeria noted that the holders of bank accounts in foreign currency or potential foreign exchange savers faced many hurdles, including the cases of some banks that refuse to open foreign currency accounts for new customers or require the opening of a parallel account in the national currency, as a condition for allowing the issuing of the transfer document necessary for withdrawal of hard currency.

 To this effect, some banks even go so far as to require from their customers, at the time of payment of banknotes in foreign currency, to fill in a nominative form mentioning the numbers of each banknote to be credited to the bank account.

 Other banks require  back-up documents or an authorization from the Bank of Algeria itself before the transfer of foreign currency abroad meant for the payment of certain expenses such as medical care or schooling overseas or any other expenses.

 In this context, the Governor of the Bank of Algeria, Mr Loukal  firmly  urged the various banks on Thursday during a broad-based meeting in Algiers with the CEOs of banking institutions to promote the financial inclusion of this category of savers, following the example of savers in national currency, “by  scrapping the various nagging constraints having no reason to be, notably by ensuring the easy opening of bank accounts, the smooth supply and operations of bank accounts and by averting to require from the customers  the justification of the origin of their funds”.