The parallel currency market in Algeria experiences high exchange rates, particularly for the euro and the dollar. This development comes in a context of economic reforms announced by the government. It is also the result of certain measures, such as the increase in the tourist allowance. However, experts believe that these adjustments, although positive, will not be enough to eradicate this informal market.
This Monday, December 16, 2024, the euro traded at 256 dinars for purchase and 258 dinars for sale on the parallel market, against rates exceeding 260 dinars the previous week. The US dollar follows a similar trend, stabilizing at 244 dinars for buying and 246 dinars for selling, compared to 245-248 dinars the previous week.
Other currencies, such as the Canadian dollar and the pound sterling, also see modest changes. This rate cut reflects a lull in the black market, although demand for these currencies remains strong. Economists attribute this development to the impact of recent government announcements, particularly the increase in tourism allocation.
The reasons for the decline in the exchange rate of foreign currencies
The announcement of the increase in the tourist allowance to 750 euros for adults and 300 euros for minors, planned for 2025, aims to reduce Algerians' dependence on the black market. This measure would allow travelers to access more currencies through official banking channels, thus limiting the attractiveness of informal currency traders.
However, current restrictions on access to foreign exchange, combined with high structural needs, maintain parallel market dynamics. Experts say the increased allowance will provide temporary relief, but it remains insufficient to meet the expectations of travelers or importers.
To sustainably reduce dependence on the black market, the authorities will need to expand access to foreign currencies in official channels, gradually align bank rates with those of the informal market, and implement broader structural reforms. This includes more transparent management of foreign exchange reserves and an effective fight against informal practices.
Despite these moderate declines, the black currency market remains an unavoidable reality for many Algerians. The transition to a regulated and transparent system will require sustained efforts and fundamental reforms, while current measures, although necessary, currently offer only limited relief.
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