Algeria’s Parallel Currency Market Sees Euro Hit Record 280 Dinars, Widening Gap with Official Rate
[Suggested image placeholder: A close-up of different currencies, Algerian dinar and euro banknotes.]
The euro has reached a new record high on Algeria’s informal currency market, trading at 280 dinars, as a significant and growing disparity with the official exchange rate underscores persistent economic pressures. The surge, observed at the prominent parallel market hub of Square Port Saïd in Algiers, means individuals and businesses operating outside the official banking system must now pay 28,000 dinars to acquire 100 euros.
A Sustained Upward Trajectory
This latest peak is part of a sustained climb for the European single currency. Since December of the previous year, when it traded at 262 dinars, the euro has gained 18 dinars in value on the black market. The pace of this increase has accelerated notably in recent weeks, with the currency gaining over 10 dinars since late October alone. Analysts monitoring the trend suggest that if this momentum continues, the euro could breach the 290-dinar mark before the end of the year.
The US dollar has also strengthened on the parallel market, reaching 242 dinars and approaching its own record high of 248 dinars set late last year.
A Tale of Two Markets
The situation highlights a stark dualism in Algeria’s foreign exchange landscape. While the euro commands 280 dinars on the street, the official rate, set by the Bank of Algeria, remains stable and significantly lower, valued at 150.67 dinars as of the latest data. This creates a gap of nearly 130 dinars between the official and parallel markets, one of the widest disparities observed.
This chasm between the two rates is a common symptom in economies with strict capital controls and limited access to foreign currency through formal channels. Businesses that struggle to obtain sufficient euros or dollars at the official rate for imports often turn to the more expensive parallel market, increasing their operational costs.
Economic Context and Underlying Pressures
The persistent strength of foreign currencies on the black market points to deeper economic challenges. Algeria’s economy is heavily reliant on hydrocarbon exports, and fluctuations in global energy prices can directly impact the nation’s foreign currency reserves and, consequently, the population’s confidence in the domestic currency.
High domestic demand for imported goods, coupled with restrictions on access to foreign exchange, typically fuels the parallel market. The rising exchange rate increases the cost of living for Algerians who rely on remittances or need foreign currency for travel, education, or purchasing goods priced in euros or dollars.
The Bank of Algeria is scheduled to publish its next set of official rates, which are expected to remain unchanged, further entrenching the two-tiered currency system. The widening gap presents a complex policy challenge for authorities, balancing currency stability with the need to address the underlying economic drivers of the black market.
Source: https://algerie-eco.com/2025/11/22/algerie-leuro-a-280-dinars-sur-le-marche-parallele-des-devises/