Algeria faces a new surge in the euro and US dollar on the black currency market. At the start of December, the euro is close to its previous record, while the dollar reaches a historic level, amplifying economic concerns linked to the stability of the Algerian dinar. This development could have consequences on trade and the purchasing power of Algerians.
On December 1, 2024, the euro continued its rise on the parallel market, reaching 256,5 dinars for purchase and 258,5 dinars for sale. Despite attempts at regulation, such as the announcement of capping the amounts of currency authorized for travelers, the upward trend does not seem to be slowing down. This new jump brings the European currency closer to its record of 260 dinars reached on September 30, 2024. Currency traders continue to post high prices, with the 100 euros trading at 25’850 dinars.
This situation is largely fueled by the instability of the parallel currency market, a phenomenon that persists despite efforts to support the national currency. The dinar appears unable to keep pace with the euro, raising concerns about the viability of the local economic system, already weakened by dependence on imports.
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Indeed, the US dollar also continues its surge against the Algerian dinar, reaching 243 dinars for purchase and 245 dinars for sale. This amount marks a new stage in the devaluation of the dinar, with the dollar now at its all-time high. Compared to last week, the greenback gained an additional dinar, highlighting a trend similar to that observed with the euro. As of December 1, 100 dollars sold for 24’500 dinars.
This rise in the dollar and the euro has repercussions on the prices of imported goods, making foreign products more expensive for Algerians. It also exacerbates social tensions, particularly among the middle and lower classes, who directly feel the impact of the depreciation of the local currency.
Furthermore, it should be noted that on the official market, the dinar remains relatively stable. According to the Bank of Algeriathe euro exchange rate is set at 140,88 dinars for purchase and 140,92 dinars for sale, and that of the dollar for 133,33 dinars for purchase and 133,35 dinars for sale. However, these rates have little impact on actual transactions, dominated by the parallel market where currencies are traded at much higher prices. This highlights a persistent divide between the formal and informal economy, which further complicates the country's economic situation.
