Hard Currency Price Increases Again in Algerian Black Market

After a significant decline preceding the end of 2024, hard currency prices increased again in the black market following the government’s measures to cap the amounts allowed to be taken out and raise the tourist grant.
The gradual increase since the beginning of the new year reached about DZD 1000 for each 100 euro note within 24 hours, with a sudden rise in hard currency demand, especially for the euro and the dollar.

As is known, the parallel foreign exchange market witnessed a decline in the recent period, especially after the government’s measures to cap the amounts allowed to be taken out by resident and non-resident travellers and restrict them to 7500 euros per year, instead of 7500 euros per trip as was previously the case.

The foreign exchange market was also affected by the announcement of the republic’s presidency to raise the tourist grant to 750 euros annually for adults and 300 euros for minors, up from 95 euros. As a result, the Algerian dinar made gains in the black market.

Since the beginning of the new year, signs of a gradual increase in hard currency prices against the dinar have appeared, reaching DZD 24,600 for each 100 euro note, later rising to DZD 24,800.

Echorouk contacted on Sunday some youth who exchange currency in the Algiers “Square” market, and also in the areas of Dar Bida and Bab Ezzouar east of the capital, they confirmed that the price of 100 euro for sale reached DZD 25,700, a record-high compared to Saturday’s prices of DZD 24,080 for every 100 euros.

Some money changers, called Serafs in Algeria told Echorouk that a sudden demand for hard currency was recorded starting from Saturday and increased as the hours passed. The same situation continued on Sunday morning contributing to the rise in prices that reached DZD 25,700 for 100 euros.

Serafs admitted that they had incurred significant losses recently due to sudden fluctuations in hard currency prices following the measures recently announced by the government because they had bought large amounts of currency, however, the prices changed within a very short time and fell by more than DZD 1500 per 100 euro.

Prices reached almost the same levels in areas in the east of the country, known for a large number of retirees from France, with a slight difference compared to the “Square” market in Algiers Port Said and Bab Ezzouar, estimated at DZD 50 and sometimes only DZD 100 for every 100 euros.

As for buying, prices ranged from DZD 25,000 to DZD 25,400 and sometimes DZD 25,500 for every 100 euros, after it was stable just a few days ago at DZD 24,000 for every 100 euros.

In the same vein, the US dollar price increased, as $100 jumped from DZD 23,600 on Saturday evening, to DZD 24,250 and sometimes $24.300 for $100.

These fluctuations come amid intense anticipation in the black currency market known as “the square” regarding the measures taken by the government, which has not yet revealed the conditions and mechanisms for benefiting from the tourism grant at its new value (750 euros for adults and 300 euros for minors), which is supposed to be determined by an executive decree that will be issued for the same purpose, according to what the presidency of the republic stated after the cabinet meeting on December 8.