Experts determine the mechanisms for the success of exchange offices – the Algerian dialogue

A group of experts in the financial sector presented, in their statement to Al-Hiwar, a number of procedures that must be available for the success of the automated exchange offices announced by the Governor of the Bank of Algeria, “which will be operational in 2023,” calling for the need to attach this decision to incentives and guarantees according to which the funds will be returned. Traded in the parallel market to its official circuit, and these experts also touched on how to create it and what is required in order to activate it automatically in the financial system.

Encouraging the tourism sector to ensure the flow of hard currency

In this regard, the economist expert specialized in international trade, Dr. Nabil Jumaa, in his statement to Al-Hiwar, valued the decision to establish automated exchange offices, which will attract hard currency traded in parallel markets and return it to the official market, stressing that the success of the process depends on the extent of the incentives. Providing all guarantees to the owners of these offices, foremost of which is raising the commission rate, and finding financing formulas for these offices by the Central Bank, by encouraging the tourism sector and thus the influx of hard currency, and this is what will enable them to exit from the informal market to its official counterparts, or by establishing offices Disbursement of a state-affiliated mechanism, with a commission value of 2 percent, in order to guarantee, according to it, the attraction of the financial mass traded in regulated markets, moving in the orbit of the state.

This, and the economist, Dr. Nabil Jumaa, explained in the same context that the period of establishing the first exchange offices dates back to the beginning of 1996, the Central Bank, when 46 offices were established, but they were not activated and were frozen, due to the low commission rate, noting that these money changers increase the commission rate in The old financial system in force at that time in the parallel markets in every 100 euros benefits from a financial value estimated at 100 dinars, which calls today for these offices to succeed, the need to provide new mechanisms, foremost of which is an increase in the commission rate.

Giving priority to the organized financial market over its parallel counterpart

For his part, the economist Dr. Bouhous Bouchikhi explained in his interview with Al-Hiwar that the decision announced by the Governor of the Central Bank of Algeria regarding the entry into force of exchange offices in the year 2023 in the field of trade and exchange in various hard currencies as well as other currencies that allow the passage of its currency outside the borders Or what is called floating. As for the exchange market in Algeria, the same expert adds, it can be divided, as he said, into two markets: an official market, where the Central Bank of Algeria puts hard currency at the disposal of commercial banks according to an official rate set by it, for example, every 1 dollar equals 135 Algerian dinars, available only to all Citizens once a year at the limits of 100 dollars as an exchange grant, and it is also available to import offices in order to finance foreign trade. On the other hand, there is a parallel market for hard currency that does not set certain conditions. Security and this is an unacceptable situation, but it is in force, and therefore any Algerian who intends to settle abroad, the first thing he thinks about is going to the market square ill for tourism or hospitalization or buying goods from abroad ….

Accordingly, Dr. Bouchikhi believes that we must support these offices by allowing them to buy hard currency directly from the Central Bank of Algeria within a fair official price, and it is stipulated that the sale takes place within a margin and a symbolic commission, as well as the sale of various currencies, and the matter is not limited to the dollar and the euro, and that in this way, according to him, the demand decreases On hard currency, and from it increases trade dealings with other countries and their various currencies without going through the dollar and the euro, and thus the development of intra-trade is achieved with all the countries of North Africa as well as the countries of the Sahel and Sahara and Africa, and with the countries of southern and eastern China, and Latin America, led by Brazil

The process will allow the banking system to integrate into the economic cycle

This, and the economist Bouchikhi believes that if this approach is adopted, the exchange rate of the hard currency will decrease with its exchange rate on the black market, and for Algeria, according to the previous loan and monetary law and the various instructions of the Central Bank, the exchange offices confirm their legal existence, but they are sham and ineffective, and that After this statement and based on the new financial reforms, it officially became viable and it is now the subject of discussion at the parliament level within the reform of the entire banking system, according to it so that the entire banking system merges with the economic cycle and economic dealers are bad in the official economy or the black parallel economy and the formation of a single financial department, And so that money does not remain circulating outside the scope of banks through dealing with checks, transfer, clearing between banks, digitization of the entire sector, and also its integration with the external environment in terms of financing foreign trade.

Exchange offices must be affiliated with banks

On a similar level, the financial expert, Dr. Abd al-Rahman Aya, explained to Al-Hiwar the mechanism that is supposed to make the exchange offices a success. In the need for the exchange office to sell at the normal exchange rate, similar to what the parallel exchange market is for tourists, so that the currency cannot be sold at the official exchange rate for tourists, because it is subsidized, indicating the importance of implementing this process.

Nasira Syed Ali