Conditions Of Repatriation Of Hard Currencies Eased By Bank Of Algeria

A new regulation by the Bank of Algeria (BA), published in the last Official Gazette (OG), extends the period for the repatriation of hard currencies in the context of export transactions to 360 days. This is double the period (180 days) granted so far.

“The exporter must repatriate the revenues from the export activity within a period of 360 days from the date of dispatch for the goods or from the date of completion of the services,” the monetary institution indicates.

This was a strong demand from exporting operators in Algeria. The Governor of the Bank of Algeria, Mohamed Loukal, had recently promised and announced a change on the matter. It is now done.

As a general rule, “the period of three hundred and sixty (360) days constitutes a maximum that an exporter may grant to his non-resident customer.

The payment period must, expressly, be transcribed in the commercial contract, “warns the Bank of Algeria. “In any case, the repatriation of the export proceeds must take place on the day of payment,” the source added.

However, the Bank of Algeria may authorize the exporter to exceed this period in special situations: “Where the export relates to durable consumer goods or equipment and the payment of which is due within a period exceeding three hundred and sixty days, an instruction from the Bank of Algeria will specify the conditions of its smooth implementation,” under the new regulation.

Deemed too short, the period of 180 days exposed national companies to unforeseen situations or unpaid bills. In case of overrun, the new regulations will impose stiff penalties. 

Given the risks involved with such a short period of time, the previous regulations discouraged many export operations.