The exchange rate on the black currency market in Algeria is experiencing a spectacular increase at the beginning of December. The euro and the dollar, currencies popular with currency traders, are reaching record levels, causing concern and speculation.
After a lull in October, the euro resumed an upward trajectory, reaching 259.50 dinars for sale and 257.50 for purchase this December 4 on the black market. This increase is explained by several factors, including increased demand as the end-of-year holidays approach. The recent decision of the Bank of Algeria to cap currencies transportable abroad has not slowed down this progression. Currency traders, notably at the famous Square Port-Saïd in Algiers, continue to offer high prices for the euro, which could soon cross the 260 dinar mark.
US dollar exchange rate follows trend
For its part, the American dollar is not staying behind. Trading at 247.50 dinars for sale and 245.50 for purchase this Wednesday, it recorded a new record, reinforcing its status as a safe haven. As demand for the greenback increases, prospects for stability in this market seem distant.
Stable exchange rate on the official market
While rates explode on the black market, the official market remains stable. The Bank of Algeria shows one euro at 140.46 dinars. The gap is thus widening between the two markets. For its part, the American dollar remains stable according to the official exchange rate. One American dollar is sold at 133.63 dinars.
It must be said that the recent decision to cap transportable currencies at 7,500 euros per year has sparked debate. Some experts believe this measure could encourage speculation rather than stabilize the market. This surge in currencies affects Algerian families, particularly those with children attending school abroad or projects requiring payments in foreign currency. Importing companies are also facing increased pressure, increasing costs and threatening to pass these increases on to consumers.
Note that 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 impacted by the increase in demand which is significant.
