2023-12-25 14:34:34
Algeria’s foreign exchange reserves should reach a level significantly higher than that of 2022 at the end of 2023, according to estimates from the Bank of Algeria. The rise in hydrocarbon prices, which represent nearly 94% of total Algerian exports, has made it possible to rebuild the country’s foreign exchange reserves.
Algeria’s foreign exchange reserves benefited in 2023 from improving macroeconomic indicators and high levels of oil prices, estimated on average at around $83 per barrel, in addition to a trade balance surplus. Indicators which allowed an increase in foreign exchange reserves in 2023 to reach 85 billion dollars. An increase of around $24 billion, compared to the end of 2022, when reserves stood at $60.99 billion.
Among the notable indicators in the field of the Algerian macroeconomy, we can cite the recovery of the Revenue Regulation Fund (FRR), which recorded an unprecedented positive result for a decade, reaching its highest level at the end of the year 2022, according to estimates from the Bank of Algeria, cited by El Khabar. The availability of the Revenue Regulation Fund (FRR) was estimated at 8.2295 billion Algerian dinars at the end of 2022, the equivalent of 17.18 billion dollars, the highest level that the FRR has seen since 2012.
Foreign exchange reserves on the rise thanks to the rise in oil prices
The Bank of Algeria estimated the availability of the FRR, at the end of September 2022, at around 698 billion Algerian dinars, or the equivalent of 5.2 billion US dollars. The Fund is financed as a reminder thanks to the surpluses recorded in the oil tax provided for in the Finance Law of 2022. The reference price being set at $60 per barrel in the Finance Law of 2023, the average price of Algerian oil was estimated at $83.97 per barrel, which therefore allowed the recovery of the FRR in 2023 as well.
On the other hand, foreign exchange reserves in Algeria experienced an increase during the year 2023. The reserves gained approximately 5.15 billion dollars during 3 months, between the end of December 2022 and the end of March 2023. The upward trend continued during the current year thanks to the maintenance of oil prices at a high level on the world market. According to specialist forecasts, confirmed by the President of the Senate last September, the amount of foreign exchange reserves should reach around 85 billion dollars by the end of 2023.
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