The International Monetary Fund (IMF) proposes to adjust the official exchange rate of the Euro in Dinar to reduce the impact of the parallel currency market, Square DZ.
Indeed, the International Monetary Fund (IMF) has made a series of proposals to reduce the impact of the parallel foreign exchange market (Square DZ) in Algeria and the appropriate solution to completely eradicate it, reports the daily Liberté, in this Thursday 06 May 2021.
In detail, the international body conducted an analysis. The latter focused on the parallel market in Algeria. As a result, it was specified that the market would gain in size and complexity over the years. However, it turns out that the IMF has proposed solutions that could lessen its impact on the national economy.
The idea would be to gradually adjust the official exchange rate and revise the cap on tourist allowances for Algerian travelers. But also, review the import restrictions of products in Algeria. Once these conditions are met, the parallel market will be less extensive in Algeria.
How to eliminate the underground foreign exchange market?
For the IMF, even if these proposals represent a real step forward in the fight against the black market of the currency, except that they will not be able to put an end to it once and for all. Moreover, in such conditions where macroeconomic factors are not favorable; no solution can deal with this problem.
Otherwise, it would have been wise, according to the IMF, to gradually legalize capital transactions. And this, to unify the two markets. However, the country is currently facing a crisis of drying up of currency resources. As a result, it would not be possible to supply a market that would make transactions in foreign currency easier.
