The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Algeria: Options for excess billions

It is not only baguettes that France gifted to Algeria. There is also the passion for big infrastructure projects, bureaucracy and saving.

Algeria exasperates with lack of consistency
Options for excess billions
Bogged down by petrobucks


Between 2005 and 2008, in the biggest oil bull run the world had ever seen. Algeria budgeted for a price per barrel of just $19. It only increased that figure to $37 this summer.

The result is that Algeria’s central bank has some $140 billion in foreign exchange reserves, invested in treasury bills and central bank deposits abroad. The finance ministry also has a hydrocarbon stabilization fund, known as the Fonds de Régulation des Recettes. According to finance minister Karim Djoudi, this has a dinar-denominated equivalent of about €50 billion. It acts as a savings fund, helping ensure that the budget will balance if there is a hydrocarbon price crash, so that, for example, infrastructure projects can continue.

Djoudi says Algeria is not about to use such funds to purchase shares in private companies abroad, or for other more adventurous plays. "The central bank manages foreign exchange reserves first and foremost to ensure liquidity. It is less about making a profit," he says.

Many in Algeria say there is enough to be done at home in terms of investment.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree