In a pessimistic tone that bodes ill for Algeria’s economic prospects, Algerian Prime Minister Abdelmalek Sellal announced yet a new slump in the country’s foreign exchange reserves, which currently stand at $112 billion. The reserves slumped from $194 billion in 2013 to $114 billion by the end of 2016, as Algeria continues to import more than it exports. Algeria faces dire consequences that may threaten its economic and social stability because of its over-reliance on gas and its rentier state model. Observers see that Algeria’s heavy dependence on hydrocarbon revenues, which make up 95% of exports, will further diminish the country’s foreign exchange reserves. Recently, Algiers resorted to foreign debt with a €900-million loan from the African Development Bank.

Source: The North Africa Journal March 07, 2017 15:57 UTC