On Sunday, March 9, 2025, the euro reached 251 dinars for buying and 254 dinars for selling on the black market at Square Port-Saïd in Algiers, catching the attention of financial analysts. This remarkable surge is part of a broader trend where other major currencies are also climbing against the dinar.
The US dollar, often viewed as a safe haven, now exchanges at 242 dinars for buying and 245 dinars for selling. Meanwhile, the British pound follows suit, establishing its value at 301 dinars to buy and 305 dinars for selling. These unpredictable changes intrigue observers and raise questions about the underlying economic and political forces at play.
The disparity between official exchange rates and the black market rates remains a persistent issue for Algeria. According to the Bank of Algeria, the official rates peg the euro at 144.43 dinars, the dollar at 134.01 dinars, and the pound at 172.38 dinars. The widening gap between these two systems fuels speculation and drives citizens toward the informal market.
This scenario arises from several factors, including banking restrictions and increased demand for foreign currencies for travel, education, or commercial transactions. The black market for foreign exchange has operated for decades, thriving on the limitations placed on access to foreign currencies through official banking channels.
Many Algerians resort to parallel markets where the rates are more favorable to bypass these limitations. While this alternative might offer advantages, it also poses serious risks, such as safety concerns, authenticity of banknotes exchanged, and the possibility of extreme fluctuations in the rates.
Looking forward, the euro may see fluctuations influenced by forthcoming government measures. Finance Minister Abdelkrim Bouzred announced on February 20, 2025, new measures aimed at combating these challenges. Starting after Aïd El-Fitr, travelers will have access to 750 euros as part of a new tourist allocation aimed at easing the acquisition of foreign currency.
This reform, long-anticipated, could significantly alter the dynamics between the official and informal markets. Details were concluded during discussions held on February 10, 2025, headed by Abdelmadjid Tebboune and attended by senior officials from the Ministry of Finance, the Bank of Algeria, and customs authorities.
The main objective is to facilitate access to foreign currencies for travelers and curb the allure of the black market. Bouzred emphasized during his address to the National People's Assembly on February 20, 2025, the importance of implementing this allocation before the end of Ramadan or immediately following Aïd El-Fitr.
To qualify for this allocation, travelers will need to visit a Bank of Algeria branch with several documents: a valid passport, confirmed tickets for flights or ferries, travel insurance, and the dinar equivalent of the €750 allocation. Upon verification, recipients will receive a receipt to be presented at the airport or port before boarding to collect their funds.
This approach aims to guarantee access to these funds only for genuine international travelers. The strategy adopted by the government has dual aims – facilitate currency access and dissociate citizens from informal money exchange, which inflates parallel rates due to high demand.
Currently, the euro trades around 254 dinars on the black market, representing a significant difference from the official rate of 144.43 dinars. To support this initiative, the Bank of Algeria has set up currency exchange offices at major transport hubs across the country. The first such facilities were established at the airport and port of Algiers, with others planned for major cities.
These exchange offices will be dedicated symbols for distributing the tourist allocation and will not offer standalone currency sales. This construction endeavors to prevent rushes and long wait times, which could become significant realities with the anticipated demand for the new measure.
Nevertheless, concerns loom surrounding the implementation of this reform. Travelers have shown apprehension over the capacity of these exchange offices to handle demand and the risk of administrative delays. Additional worries involve vagueness concerning how this allocation will be accessible for travelers using land routes.
Such issues are pressing concerns for the government, which must clarify the mechanisms quickly to secure the effectiveness of this policy. Recognizing these challenges, the executive is committed to closely monitoring the implementation of this reform and adjusting the procedures based on real-world situations.
While the initiative's efficacy remains to be seen, it certainly indicates the authorities' determination to organize and regulate Algeria's currency market. This concerted effort to recalibrate the situation could significantly reshape how Algerians acquire foreign currencies.