These Are The Repercussions Of US Dollar’s Slump On The Algerian Economy

At a time when Algeria derives its revenues from exports in US dollars, there are signs of the green currency’s shrinking circulation in the world, as Brazil and China have agreed to abandon the dollar in their bilateral trade exchanges in favor of using their local currencies.
The countries of the BRICS bloc, which Algeria has expressed its desire to join, are also preparing to launch a new currency backed by real values such as gold, which will be a platform for their future transactions in the transfer of goods and services. How will Algeria be affected by the repercussions of these dollar-related changes?
Economists agree that Algeria is not immune to a possible dollar crisis, especially since it receives the revenues from its oil exports in the American currency, and the decline of the dollar may lead to a continued decline in the global growth rate and thus the hypothesis of a relative decline in the price of fuel in the future.
The higher authorities must adapt to the new global economic situation by applying for access to the BRICS bloc, which will have a positive impact on the Algerian economy and will give it other options in international monetary transactions far from the US dollar in the future.
In this regard, the economist, Kamel Khafache, revealed in a statement to Echorouk that the preparation of the BRICS countries to create their own currency, and the expression of the desire of a large number of countries to join them, including Algeria, had a greater impact on the strength of the dollar in the global monetary arena.
In recent weeks, and contributed to its decline, especially since China began to use its currency, the yuan, in international transactions, as well as Brazil, and with the demarcation of the “BRICS” countries their own currency, this decision will affect global trade, which has been based on the dollar since 1945, and shrinks the space The use of the American currency, which will be known specifically in international transactions, and then a decline in exchange.
Our interlocutor also underlined that the dollar, which has been the hard currency adopted since the 1940s in commodity transfers in the world by the decision of the “Bretton Woods” institution, was affected more than 20 years ago, after the introduction of the euro currency in 2000, but it will be more affected today after some countries abandoned the use of this currency, as well as the willingness of the “BRICS” bloc, starting from the year 2024, to control an important number of global monetary transactions by creating its own currency and competing with the dollar, and there are more than 20 countries that will adopt the new monetary system, according to him, which puts an end to the dominance of the US dollar.
As for the possibility of the Algerian economy to be affected, Khafache assures that the Algerian cash reserve, which today contains 54 billion dollars, according to the latest report of the Bank of Algeria, is composed of different and various currencies, making it immune to the dollar crisis, saying: “There is no fear for Algeria’s savings from the collapse of the value of the dollar.” “.
As for Algerian exports, although most of them are registered in dollars, Algeria’s desire to join the “BRICS” group will avoid an international conflict over raw materials in the future, and will also protect it from currency conflicts, stressing the importance of including an important article in future gas contract negotiations. It is the possibility of changing the currency in the sales contracts and not to link the export to the US dollar, which is a requirement that is easy for Algeria to implement.
In this context, the economist Abderahmane Mabtoul believes that the best option for Algeria today to avoid the global dollar crisis is to apply to join the “BRICS” bloc, as this will open up various economic opportunities for the country and free it in the future from the obligation to link the export of hydrocarbons to the dollar currency.
“We recently witnessed the bankruptcy of Silvergate Bank, which specializes in crypto-currencies in the United States of America, as this sector has been the scene of a series of scandals, including the bankruptcy of Silicon Valley Bank, Technology Bank and Signature Bank,” Mabtoul indicated in a statement to Echorouk.