This Is Why The Dinar Currency Collapsed

Hard currency traders at informal markets in large cities of Algeria have confirmed the emergence of unusual market customers who buy Euros and Dollars without even asking for their price, and in a large amount sometimes amounting to ten thousand Euros, the rough equivalent of more than two hundred million centimes (DA), at a exchange rate of up to 20,300 Dinars per 100 Euros.

 This happened for the first time since the emergence of this single European currency in the global economic arena.

This new occurrence links the market people and traders to this alien and unique movement marked by the new political discourse and also the economic and even the psychological trends that instill fear in the hearts of people.

It should be noted that new hard currency prices have delighted the Algerian community members notably those settled in France.

According to an official statement, over 200,000 immigrants entered Algeria from different countries of the world and thus made hefty financial gains owing to the high hard currency exchange rate at informal level.

In Algeria, the situation suggests an unprecedented rise in various imported materials and products, especially after the expected strong return of the so-called “bag” trade, which has evaporated in front of containers in the years of prosperity and openness to all Asian markets in recent years.

 Speaking to Echorouk reporters, hard currency traders affirmed that the decline in the price of the national currency to less than 20 thousand Algerian Dinars per hundred Euros became impossible, and predicted the setting of 22,000 Dinars per hundred Euros, before the end of the current year.

This contingency, they argued, coincided with the timing of low hard currency demand after the end of the Hajj or Pilgrimage season, away from the Umrah season and tourism holidays in addition to the return of Algerian immigrants residing overseas to the homeland.

This  means that current hard currency prices are likely to remain high in the upcoming period, as outsiders are likely to sweep the market and impose the predominance of demand and supply notably among the new rich people who are opening an account in foreign banks or willing to purchase real-estate property in Spain or Turkey, or those who are to decide to quit the country definitively in a bid to be spared the potential manifold crisis that the country will live in the next five years.