The health of Algeria’s currency, the dinar, has always been measured against oil prices. The dinar’s exchange rate against hard currencies moved from 79.82 dinars per dollar and 106,9 dinars per Euro four years ago, to 118,14 dinars per dollar and 137,07 dinars per Euro four days ago. The fall of the dinar aggravates Algeria’s trade deficit, which deepened about 16 percent in the first five months of the year. Inflation has also been exacerbated by the government’s money printing policy further eroding the dinar’s fragile stability. What further complicates future prospects for the dinar are the measures taken by the government to cover the budget deficit.

Source: The North Africa Journal August 18, 2018 09:11 UTC