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World Bank “Justifies” Algeria’s Resort To Print Currency

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World Bank “Justifies” Algeria’s Resort To Print Currency
D.R

The World Bank caught up it assessment of the financial situation in Algeria after classifying the country’s financial situation as a crisis, and it declined before the end of the spring session of the two international financial bodies in Washington, and issued an alternative report to assess the financial and economic situation of Algeria.

Forty-eight hours after the World Bank’s first report through which it expressed its concern about the country’s financial situation and the inflation rate that is eligible for the “explosion,” the Financial Authority published, at the end of the session, a new version of its report on the economic outlook for the Middle East and North Africa bringing a completely different assessment from the first assessment that was carried out by the report in its part on the economic situation of Algeria.

According to the revised version, the follow-up to the economic situation in the Middle East and North Africa, which was published last Monday, was replaced by a new consolidated version after publishing on its website a non-standard version based on incorrect information concerning the economic prospects of some countries, then it corrected the situation and figures that it carried and the notes that are attached to it.

According to the second report and its prospects for the situation of Algeria, the World Bank referred to “the most appropriate management of the exclusive recourse to printing the currency to finance the deficit” without speaking of the scenario of the financial crisis that threatens the Algerian economy, as it was already done in the first version of the report.

The report also showed that it is “difficult for the government to resist the desire to delay the budget reset even if the country is heading towards a financial crisis that is caused by recourse to cash financing”, as the Wold Bank report, which includes a correction of the first report by dropping the phrase “financial crisis” had already been used in the first report.

One of the most important points of the report in the assessment of the situation of Algeria was based on a report entitled “Algeria: The 2035 Vision”, which is still being prepared in the initial stage and the observations that it contained do not represent the opinion of the World Bank as long as it has not been formally ratified or published by the Bank on its website, which allowed the deletion of the reference to this report in the new version, in parallel with keeping the bank on the expectations of the major economic indicators of Algeria.

The World Bank’s assessment of its report, without causing any noise, comes after about two years of the official reports in which the value of the Algerian exchange reserves fell below the threshold of $ 100 billion, as it also tackled Algeria’s ability, based on their reserves of hard currency, to cover the import, which are the figures that came completely wrong as replied by the government in statements of the former Finance Minister, Haji Baba Ammi, then the statements of the former Prime Minister, Abdelmalek Sallal, in which he refuted the figures of the World Bank and presented the official figure of exchange reserves and expectations of Algerian experts to not fall below the threshold of $ 100 billion to the end of 2017.

What are the backgrounds of the World Bank’s first assessment? And the reasons for correcting it and issuing a second report that destroys the credibility of the first report?

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