The Bank of Algeria has decided to change the remuneration conditions for deposits in foreign currency accounts of individuals, foreigners, traders, and exporters.
Indeed, in a new instruction published on the website of the financial institution, the Bank of Algeria unveiled its new conditions. The document in question indicates in particular that ” the assets in traders ‘and exporters’ currency accounts cannot be the subject of term deposits and do not give rise to any remuneration”.
Thus, note no. 01-2022 of the Bank of Algeria, dating from January 5, 2022, reveals that “the term deposits of individuals are remunerated at the investment rate set by the Bank of Algeria”. This instruction adds that “term deposit contracts are firm and not revisable, any early termination of said contract by the subscriber will result in the loss of all remuneration”, explaining that the maximum duration of a term deposit is 12 months.
The Bank of Algeria, which began a series of reforms over the past year, aims, in this new instruction, to “define the conditions for the remuneration of deposits in currency accounts of natural persons of Algerian nationality resident and non-resident, resident and non-resident foreign nationals as well as traders ‘and exporters’ currency accounts”. It informs its customers that the term investment rates will be fixed by the decision of the Bank of Algeria at the beginning of each calendar quarter.
The commission received by the banks set by the Bank of Algeria
This new instruction from the Bank of Algeria also indicates that banks receive, for the management of open currency accounts and operating on their books, a management fee set at 0.50% per year, paid in Algerian dinars.
“This remuneration is calculated on the average annual balance of all the currency accounts managed by their services and is paid to them once a year, from the start of each financial year for the year coming from s ‘flow out. The average annual balance of currency accounts under bank management is determined under its responsibility”, specifies this note, which adds that the Bank of Algeria is responsible for the remuneration of currency accounts under the conditions and limits set by the instruction.
“The provisions of instruction no. 01 / BA / DGRFE of February 20, 1991, and any other provision contrary to the present instruction are repealed”, underlined the Bank of Algeria.
