Wednesday 19 January 2022

Algerian dinar hits historic low versus dollar

ALGIERS, August 17, 2015

Algeria's currency has slipped to a record low against the US dollar, a central bank source said Monday, as falling crude prices more than halved vital oil revenues and hit public finances.

The central bank, which keeps the dinar in a managed float to major currencies, had allowed the currency to depreciate to curb imports expected to reach $57.3 billion in 2015, exceeding exports by their widest ever margin, another financial source who asked not to be named, told Reuters.

The dinar slumped to 105.84 to the dollar and 117.48 to the euro, the central bank source said. The dinar was estimated at 79.6 to the dollar in 2014.

"A poor dinar reflects Algeria's economic and financial weakness and extreme fragility to external shocks such as falling oil prices," a consultant working for the government said.

Oil and gas exports have made up as much as 98 per cent of Algeria's revenues in recent years. But government officials expect them to bring in $34 billion this year, down from $68 billion in 2014.

The Opec member has already frozen a series of development programmes to cope with falling revenues.  - Reuters

Tags: Algeria | Dollar | Dinar |

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