The exchange rate of foreign currencies is upset due to the imbalance between supply and demand for the past few days. The euro soared and the dollar broke a new record, reaching the symbolic mark of 240 dinars this Wednesday.
The black currency market has emerged from the lethargy into which it had fallen after its panic at the beginning of October. The dynamism that began last week was reminiscent of the upheavals of the first days of October, when foreign currencies reached peaks. This Wednesday, November 20, the exchange rate experienced significant fluctuations.
It should be remembered that the significant rise that currencies experienced at the beginning of October has faded. The euro and the dollar then fell before stabilizing and then surging on November 10. This week, a new cycle of growth has begun, with the record broken by the dollar on the main black exchange markets, notably Port Said Square, the best-known market in the country.
This upward trend is confirmed. The euro is getting closer and closer to its record broken in October. It trades at exactly 255.5 dinars for purchase and 257.5 dinars for sale. Note that this rate can change from one region to another, with a margin of 2 DA, depending on the wilayas.
For its part, the American dollar broke a new record and reduced its margin with the euro. It is trading at 241.5 dinars for purchase and 243.5 dinars for sale this Wednesday. As for the Canadian dollar, popular with Algerians who have a large community in the North American country, it remained stable. It trades at 159 dinars for purchase and 161 dinars for sale.
Why is the exchange rate soaring?
The black currency market responds to a chaotic phenomenon which makes it unpredictable. However, the law of supply and demand is the main parameter for understanding currency fluctuations. The exchange rate on the black market is therefore impacted by the increase in demand. An increase which will have to be confirmed in the coming days, while the period is not favorable for an increase in supply. We should therefore expect a high exchange rate in the coming days.
The exchange rate on the official market
On the official market, foreign currencies are relatively stable, according to quotations from the Bank of Algeria this Thursday. The dollar is trading at 133.35 dinars and the euro is at 141 dinars. Although the fluctuations are minimal, the rate has increased slightly compared to last week.
