Algerian Dinar gaining value
The official dinar-dollar rate is at a low. The dinar is gaining value and the national economy is in the green. Are the authorities deliberately increasing the value of the dinar?
Until recently, the dollar was traded on the official market at around 80 dinars or more. In the past few weeks it is more like 72 or 71 dinars. Between 1990 and 1995, the dinar suffered several devaluations as part of a structural adjustment program imposed on Algeria by the IMF. There was a further devaluation two years ago.
The Algerian government has invested a lot to stabilize the dinar. Algeria currently has USD 37 billion in reserves. Unemployment remains around 24%. There are plans for a rate of 76 dinars for the financial year of 2005. (menareport.com)
© 2004 Mena Report (www.menareport.com)