Raouya: “Only $ 11 Billion Will Be Spent In Hard Currency Up To December 2019”

Minister of Finance, Abderahmane Raouya, has predicted that $ 87 billion dollars will be available in the Algerian exchange reserves until the end of 2019, thus totaling about $ 98 billion, which means that the authorities will be wary to spend only $ 11 billion dollars over the next two years, with on focus an expected hike in exports and foreign currency earnings.

On the sidelines of the opening of a workshop on Islamic banking at the Palace of Exhibitions in suburban Algiers, which is being merged this year with the local production Fair in its 26th edition, the minister said that the cash reserve funds that will be issued by the end of 2019 were not large. 

“The volume of foreign exchange will stabilize at $ 87 billion dollars, which means that the amount of money to be spent will be limited to only $ 11 billion dollars. 

This cautious policy will contribute to spurring the growth of the national economy,” he added.

The new Islamic financial services will be launched by the banks in Algeria, he further announced. 

Mr. Raouya described the new direction of the banking sector as promising, pointing out that private banks have already adopted these Islamic-oriented products, while all public banks will follow this trend shortly. 

He considered that all those who want to launch these Shariaa-based services, they are only required to request the required license from the Bank of Algeria, which is compelled to provide wide-ranging products and services to customers.

With regard to Al-Sindi Islamic loan, the finance minister did not rule out the possibility of referring the matter to the Government for endorsement during the year 2018, stressing that “this proposal can be used to diversify the national economy, and we are open to anything that would inject fresh liquidities into the country’s banks.”

As a recall, Prime Minister Ahmed Ouyahia has of late revealed that the Algerian Government has decided to adopt a prudent fiscal policy based on import controls.

“We do not have much of the reserves left in the State Treasury, and the exchange reserve   earnings now stand at $ 98 billion, so we will be strict with the money we will spend,” he underscored.