One Dollar against 102 Dinars for the first time in Algeria’s history

The national currency, the Dinar, again plunged on Wednesday to a new low level with the Bank of Algeria setting 101.95 dinars as an exchange rate against the dollar unit. This is the most serious decline of the Dinar in half a century.

While the exchange rate of the national currency stood as 113.26 against the Euro. This adverse situation has touched off a wave of alarm and worry among those in charge of the Algerian financial sector, who have been playing the role of spectators up to now.

According to published data at the level of the Central Bank, the Algerian has experienced significant decline and its price has seriously plummeted to a record level versus the US currency.

It is a serious indicator that experts attribute to Algeria’s declining export revenues from hydrocarbons and the unabated oil price drop that came down lately from the roof of fifty dollars and now it doesn’t exceeds $ 47, while latest reports from the Organization of Petroleum Exporting Countries (OPEC), suggested that the oil price will continue its downward trend through the year 2016 to reach then around $ 40 a barrel.

This bleak scenario was also confirmed earlier this week by the World Bank itself. This protracted volatile juncture would certainly have further negative repercussions on the value of the Algerian Dinar against hard world currencies owing to all these untoward factors, according to economic experts.

The latter also pointed out that every slump in the dinar’s value is followed by a swift hike in the price of imported medicines, cars, food products, clothing and textiles and gold fittings.