The single European currency continues to outpace the Algerian dinar on the official currency market. This Thursday, December 10, the euro was trading at 158.9 dinars.
According to the official quotations of the Bank of Algeria, the single European currency has recorded a new record against the Algerian dinar. Indeed, this Thursday, December 10, the euro traded at 158.90 dinars for sale and 158.86 dinars for purchase.

For its part, the US dollar also recorded an upward trend on the official market, with 131.46 dinars for sale and 131.45 dinars for purchase.

On the black market in Algiers Square, the euro and the dollar soared against the dinar, due to recent rumors about a possible resumption of international flights by the end of December.

Thus, during the past week, on the parallel market, the euro was trading at 204 dinars for purchase and 208 dinars for sale, while the American currency was exchanged at 171 dinars for purchase and between 173 and 174 dinars for sale.

"The parallel market determines the dinar exchange rates closest to the country's economic performance"
In an interview with our colleagues from Liberté last November, economist and financial expert Omar Berkouk explained that "the dual foreign exchange market is the solution that the Algerian authorities have put in place to relax without abandoning the control of the foreign exchange market", stressing that "this 'tolerance' is prohibited by multilateral trade or finance bodies to which Algeria is a member or candidate".

Indeed, for the economist, "the parallel market owes its existence to its usefulness". "This parallel market determines the exchange rates of the dinar closest to the reality of the country's economic performance. It is not the rates of this market that are aberrant but those of the Central Bank that seem attractive but not freely accessible to operators and citizens," he said.

In the same context, Mr. Berkouk had indicated that "the disappearance of the parallel market by strengthening controls and drying up the volume of currencies or the abandonment of exchange controls with the introduction of the convertibility of the dinar which would be accompanied by a convergence of exchange rates from the official market to the unofficial market. ".

Adding, moreover, that "this would enshrine a devaluation of 50% of the dinar against the euro. This is the only devaluation that would make sense from a macroeconomic point of view, but its social consequences would be devastating."