Financial shock hit Algeria in 2013

Governor of the Bank of Algeria Mohamed Laksaci said Algeria was hit by an external shock during the first quarter of 2013 due to fall of hydrocarbons exports income.

“Oil exports dropped to $17.54 billion in the first quarter of 2013 compared to $20.3 billion in 2012 due to exports and prices fall,” said Laksaci in a conference.

“This external shock obliges Algeria to learn the lesson of the 2013’s first quarter lesson quickly,” he added.

Laksaci believes that world economy trends in the European Union are not encouraging on middle term due to recession although the US experienced some improvement during the same quarter in 2013.

He said Algeria’s good exports continued rising in 2013’s first quarter while imports reached $12.6 billion during the same period compared to $4.3 billion in 2012.

Imports were estimated at $12.6 billion.

According to the Governor of the Bank, Algeria’s reserves reached $76.189 billion during the same period in 2013.

Speaking about inflation, he said its average went down in the end of the first quarter of 2013 to 8.5 percent for the first time after a 19-month-continued rise since January 2011.

In January, the Bank of Algeria started implemented a new policy to recover surplus liquidity from commercial banks for 6 months.