Hard Currency Exchange Offices: Modalities Waiting For Government’s Decision

With the rise of hard currency prices at the level of the parallel market, due to the approaching Umrah season and also the increase in travel abroad during the summer, members of the Finance and Budget Committee of the National People’s Assembly confirm that they have received assurances from the Minister of Finance, Laaziz Fayed, that the opening of exchange offices for the sale of hard currency will be through a regulatory decree, it complements the new monetary and banking law and defines the conditions and modalities for the management of these offices, which is the decree that is currently on the government table.

In the context, the exchange rate of the euro rose, on Tuesday, to DZD225 for sale and DZD223 for purchase, i.e. DZD22500 and DZD 22300/100 Euros at the level of the Algiers square parallel market for the hard currency exchange.

The exchange rate of the dollar also exceeded DZD205 for sale and DZD203 for purchase, and the exchange rate of the pound sterling reached DZD253 for sale and DZD251 for purchase. In contrast, le the price of the Canadian dollar witnessed a noticeable inflammation, exceeding DZD151 for sale and DZD149 for purchase, and money changers attribute the reason for the high costs to the approaching return of the Umrah season which is expected to start at the beginning of next September, and also the departure of a large number of Algerians on vacation starting from the current month of August, especially employees, merchants and businessmen, who travel abroad, which led to an increase in the demand for currency at parallel points of sale.

A member of the Finance and Budget Committee of the National People’s Assembly, Hichem Safar, told Echorouk that the rise in the price of hard currency at the level of parallel markets has nothing to do with the regular market or with the official dinar in banks. Instead, it is linked primarily to supply and demand, as it was expected that the reason for the rise would be the departure of a large number of Algerians during this period of the year abroad for the summer vacation.

According to Hichem Safar, these people acquire a large percentage of the hard currency from the parallel market, especially since the tourism grant by the banks does not even cover the cost of a taxi from the airport to the hotel and one night’s stay there, as the banks give between 95 and 100 euros for each Algerian heading abroad.

The MP stressed that the Minister of Finance, Laaziz Fayed, promised to issue the applicable texts framing the new monetary and banking law as soon as possible, especially those related to opening new exchange offices, which will legalize the sale of the euro, the dollar and the rest of the hard currencies, by determining who is selling and also the profit margin with insurance of transactions according to a specific profit margin.

The spokesman asserted that opening exchange offices and granting credits to active dealers in the sector will gradually lead to tightening control on the parallel market for hard currency, which will progressively besieged, expecting that regulatory texts will be issued shortly, and this may be completed in the next issue of the Official Gazette, especially since the Minister of Finance stated after the last parliamentary session that most of the regulatory texts are ready and available on the table of the General Secretariat of the Government, as they will be reviewed and issued as Prime Minister Aimene Benabderrahmane made the same statement during his meeting with the heads of parliamentary blocs last July at the headquarters of the National People’s Assembly.

The government’s action plan presented in 2021 includes the axis of displacing the parallel market for hard currency and opening exchange offices. This point will also be addressed during Prime Minister Aimene Benabderrahmane’s visit to the National People’s Assembly between next September and October to present the statement of general policy for the second year respectively, which is the outcome of the government’s performance in all sectors between September 2022 and 2023.