The exchange rate of the euro continued to rise nationally, across the various informal markets for the currency, to reach its highest levels this year, after the exchange rate of 100 euros exceeded the threshold of 20,700 dinars in the black market, which is what currency dealers considered a precedent in the date of currency conversion, and contrary to all indicators And the economic conditions imposed by the Corona pandemic since last March, and the accompanying preventive measures, by banning travel abroad, closing borders and stopping all tourist trips.
At a time when all the data suggested a decline in the euro exchange rate as a result of these circumstances, especially after the decision to close the borders, which lasted about eight full months, and to suspend trips abroad, which caused the activity of travel and tourism agencies to get stymied.
On the currency black market (Square Port Said), the euro has this week risen above the symbolic bar of 200 Algerian dinars. The dollar remains stable. Pending the reopening of borders, the market is calm.
Seven months after the closure of the Algerian borders, the informal currency market is still slowing down. Its main customers – importers, hadjis, holiday-makers, sick people taking care of themselves abroad… – no longer travel.
Demand is falling sharply. But supply is also falling: emigrants, who are one of the main sources of supply, are absent. Importers, who use over-invoicing, no longer supply the market as they used to.
Today, the market is essentially supplied by pensioners from foreign schemes, especially French ones. They receive their retirement pensions in foreign currency on an account opened in Algeria which they then convert into dinars on the informal market to take advantage of the gap which often exceeds 25% for the main European currencies.
The black currency market seems to have found its equilibrium
Despite the absence of customers, the black market seems to have found its balance. After a decline that brought the euro, the main currency traded at Port Said Square, below 190 dinars (189 dinars) last June, following the announcement of an extension of the border closure, it has gradually balanced.
The rate of the euro is supported by three elements:
1. The decline in coronavirus disease in Algeria, which gives hope for periods of time that borders will reopen as soon as things start to improve in Europe.
2. The fall of the dinar on the official quotations of the Bank of Algeria. Since it crossed it at the end of last July, the euro has not fallen below 150 dinars in the interbank quotations of the Bank of Algeria.
3. The strategy of sellers who refuse to “sell off” their currencies. Many participants are convinced that the current fall of the euro is only cyclical. They even anticipate a strong rise after the reopening of the Algerian borders and the resumption of the flights of the Air Algérie company, even if the present gap between the euro and the dinar is 33%.
As a result, this week, the euro consolidated its position on the currency black market by passing above the 200 Algerian dinars (20,700 DZD) for the first time in several months. The dollar remains stable at 165 DZD.