Algiers, Algeria – The euro and the US dollar continue to rise sharply against the Algerian dinar on Algeria's black currency market, even as their values remain relatively stable in the official rates published by the Bank of Algeria. This ongoing divergence underscores the growing duality in Algeria’s exchange rate system.
Euro Nears Record Highs on Black Market
Since its significant drop at the start of November, when it fell to 250.50 Algerian dinars, the euro has been steadily climbing. The single European currency is now inching closer to its record high of over 260 Algerian dinars last seen in September.
At the end of September, the euro traded at over 260 Algerian dinars per unit in several regions, including the capital, Algiers. However, its value plunged in early October following the Algerian government's announcement to freeze the issuance of registration cards for imported vehicles under three years old. This measure briefly tempered demand for foreign currencies.
Tuesday, November 19, 2024, traders at the bustling Port-Saïd Square in Algiers were selling the euro at 257.50 Algerian dinars, equivalent to 25,750 dinars for a €100 banknote. This marks a rise of 1.5 dinars since the previous week, when the euro traded at 256 dinars. If this trend continues, the euro may soon breach the psychological threshold of 260 dinars again.
US Dollar Hits New Highs
While the euro climbs, the US dollar is setting new records on Algeria’s black market. After trading at 238 dinars in early November, the dollar surged past the symbolic 240 dinar mark and continues its upward trajectory.
On November 14, the dollar was trading at 242 dinars. By today, November 19, it has reached a new peak of 243.50 Algerian dinars per unit. This reflects growing demand for the US currency, driven by economic pressures and a widening gap between Algeria's official and parallel markets.
Official Exchange Rates Show Stability
In contrast to the black market, the Bank of Algeria’s official exchange rates remain stable. On November 19, the official rate for one euro is set at 141.07 dinars on the buy side and 141.09 dinars on the sell side. Similarly, the US dollar is trading at 133.32 dinars to buy and 133.33 dinars to sell.
Growing Divide in Exchange Rates
The steady rise of the euro and dollar on the black market highlights the widening gap between Algeria’s two exchange rate systems. This disparity not only complicates currency transactions for ordinary citizens but also reflects underlying economic challenges, including limited foreign currency reserves and regulatory constraints on official currency trading.
As Algeria navigates these complexities, the black market remains a critical—albeit unofficial—barometer of the country’s economic dynamics.
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