Euro black market thrives in Algeria

Concern over the spread of regional conflagration is fuelling the increased demand for black market currency in Algeria.

Euro black market thrives in Algeria

World Bulletin / News Desk

Uncertainty over inflation and fears stemming from the Arab Spring is forcing Algerians to trade in black market Euros, while the government increases its spending to a 15-year high in order to avoid social unrest.

According to Professor Abderrahmane Mebtoul from the University of Algiers, Algerians are investing in property, gold and foreign currencies to protect themselves against inflation and therefore the devaluation of the dinar.

Many Algerians have resorted to investing in estates because of these fears. After an increasing number of Algerians began purchasing estates in southern Spain the government brought in curbs to stop the Euro from leaving its shores. Now Algerians can only take €7,200 outside the country every year.

However, these curbs have seen the rise of the black market. Last week, illegal currency exchange dealers were selling the Euro for 150 dinars, which is 40% higher than the standard rate.

Currently, Algeria has an estimated $190 billion worth of foreign currency within its borders, making it one of the biggest stockpiles in the world. This "black" economy is worth an estimated 60 percent of Algeria's GDP.

Last Mod: 07 Ekim 2013, 13:48
Add Comment