Posted 2/17/2024, 7:00:00 AM
Algerians Turn to Black Market as Dinar Plummets, Sparking Shortages and Discontent
- Algeria has a thriving black market for foreign currencies like euros and dollars due to lack of confidence in the plummeting value of the dinar currency.
- The widening gap between official and black market exchange rates shows how everyday Algerians have lost buying power amid high inflation.
- The government is reluctant to devalue the dinar, worried about price spikes and angering the public.
- Limits on imports may be contributing to shortages of goods, despite Algeria benefiting from high oil and gas prices.
- Purchasing power has fallen substantially for Algerians as inflation erodes the value of incomes paid in dinars.