According to the Trading Economics report, Algeria was ranked 26ᵉ globally and 3ᵉ in the MENA region (North Africa and Middle East) in terms of gold reserves with 174 tonnes. On the other hand, the country still has 70 billion dollars in reserves, which is still considerable, provided that promising investments are financed with these funds..
Abderrahmane MEBTOUL, University Professor, State Doctor in Economic Sciences
The 2023 report from the Market Development Organization for the Gold Industry, World Gold Council, shows that Algeria’s gold volume remains unchanged since 2006/2007 with around 173.8 tonnes and that the Money, generally speaking, is a social relationship reflecting the relationship between State/citizen trust, allowing exchanges but not creating wealth. For Algeria, as I pointed out in two contributions published in 2006 and 2007 (see google.com A. Mebtoul.2006/2007). On December 30, 2024, on the stock market, the gram of gold at 84 dollars, the ounce of gold was quoted at 2,600 and the kg of gold at 83,800 dollars giving 174 tonnes a value of 14.60 billion dollars. , an increase of almost 30/% compared to 2021/2022 However, to avoid bad assumptions, those responsible must learn to communicate well, because in popular consciousness gold is a very sensitive subject. The stock of gold having not increased for many years, we can hypothesize that the Bank of Algeria did not acquire this production which was intended either for export or for the domestic market. via jewelers.
Historical experiences show that it is not countries that have significant foreign exchange reserves or a trade surplus that necessarily experience the purchasing power of their population and a high growth rate. . The social relationship currency reflecting the state/citizen trust relationship is a sign allowing exchanges that do not create wealth. On the contrary, hoarding and speculation in safe havens like gold, certain currencies or certain raw materials are harmful to any economy..
It is a question of avoiding this monetary myth of focusing solely on the balance of the trade balance in order to preserve foreign exchange reserves, a static vision, and not dynamic, one should not rejoice in a positive trade balance or significant foreign exchange reserves if we witness shortages or import restrictions which paralyze the economic fabric. In Algeria, the integration rate of both public and private companies does not exceed 15%. Algeria remaining a rentier economy, non-hydrocarbon exports increased, according to the quarterly statistical bulletin for the first quarter of 2024 established by the Bank of Algeria, from $5.98 billion in 2022 to $5.06 billion in 2023 .
The macro-financial framework remains relatively positive with dforeign exchange reserves, at the end of 2023, of 70 billion dollars and a relatively low external debt of 1.6% of GDP. Still, the current unemployment rate, estimated by the IMF at around 14%, would require an 8 to 9% growth rate over several years. Inflation was more than 9% between 2022/2023, having settled during the first half of 2024 at 6.8%, but with a clear recovery since September 2024, accentuated by poorly targeted generalized subsidies, the total social transfers exceeding 15% of GDP for certain basic necessities.
