“Algeria continues to face important challenges posed by the fall in oil prices four years ago”, said IMF team after concluding a recent visit to the North African country. As a result, the economic environment may not become conducive to reforms and private sector development”, warned the IMF staff. Thus, Algeria central bank should stand ready to tighten monetary policy if inflationary pressures do not abate. Such safeguards should include strict quantitative and time limits to monetary financing, and the pricing of such financing at market rate. Trade policies should be centered on encouraging exports rather than imposing distorting nontariff import barriers, the IMF experts said.
Source: The North Africa Journal March 13, 2018 15:11 UTC