Five Reasons Behind The Steep Hiking Of 5 Hard Currencies On The Black Market

On Monday, the prices of 5 foreign currencies rose on the black market, while they have witnessed stability in official banks for some time, and it is related to the euro, the dollar, the British pound, the Chinese yuan and the Turkish lira.
The exchange rate of the dollar on the black market until Monday, November 7, reached 220 dinars for purchase, 218 dinars for sale, the euro 219 dinars for purchase, 217 dinars for sale, the sterling pound 245 dinars for purchase, 242 dinars for sale, the Turkish lira 16 dinars for purchase, 15 dinars for sale, and the Chinese yuan 29 dinars for purchase and 27 dinars for sale.
On the other hand, at official market prices, the exchange rate of the US dollar amounted to 140 dinars, the euro 141, the sterling pound 162 dinars, the Turkish lira 7.50 dinars, and the Chinese yuan 19.17 dinars.
The money changers of the “Square” market in downtown Algiers confirm that this upward trend of hard currency prices in the informal market has continued since the return of air traffic and trips abroad, the fading of the risks of the Corona virus and the resumption of Umrah and Hajj trips, as the price of hard currency increased with the government’s announcement to allow the import of cars less than 3 years old from abroad at the expense of the citizen who owns the purchase process, and from his personal savings.
It is expected that the process will officially start after the completion of the discussion on the Finance Bill for the year 2023 and its issuance in the Official Gazette and its entry into force, which is expected to make the demand for hard currency escalate.
In this regard, the economic expert, Hamza Boughadi, asserts that the improvement in economic indicators in Algeria since the beginning of the year is due to the rise in the price of fuel and the hike in incomes, which prompted the authorities to take a number of measures to improve the living conditions of Algerians, including pushing the position of the dinar to rise, in contrast to of the decisions taken in the past years to reduce it in order to generate new income.
Boughadi said in a statement to “Echorouk” that improving the position of the dinar in the Bank of Algeria aims to lessen inflation and prevent the flames of prices from consuming the wage increases announced by the authorities each time, which are often followed by a rise in demand for consumer goods, as the economic situation improves today, with the return of investment and the resurgence of optimistic financial indicators, which made the country’s monetary authorities decide to improve the position of the dinar, which has been faltering in the past years.
As for the reason for the rise in the exchange rate of the euro, dollar and other currencies on the black market, the expert said that this is due to 5 reasons, which are the disappearance of the Corona virus epidemic, the return of air transport, the resumption of the Hajj and Umrah seasons, and the official announcement by the authorities of the return of importing cars less than 3 years old soon from the citizens’ own savings in hard currency, as well as the continuation of the process of importing cars from abroad, by some citizens at their own expense with the payment of all fees.
The latter justifies the improvement or stability of the price of the dinar in the official market in exchange for its decrease in the black market, by the fact that the two markets are separate and have no relation to each other.