Euro Hits Record High on Algeria’s Parallel Market Amid Growing Pressure on the Dinar

For several weeks, the euro has been soaring on Algeria’s parallel market, surpassing 27,400 dinars for 100 euros — a historic peak reflecting strong pressure on the national currency and rising concerns over the dinar’s stability.

The euro’s continuous climb on the informal exchange market shows no signs of slowing down. This week, it reached up to 27,450 dinars for 100 euros, marking an unprecedented level. On the ground, money changers are offering between 271.5 dinars for buying and 274.5 dinars for selling, narrowing the gap between purchase and sale. This reduced margin illustrates a strong and persistent demand that keeps pushing prices upward.

Meanwhile, the official market remains strikingly stable. The Bank of Algeria’s latest figures show the euro trading around 15,000 dinars for 100 euros — or 150.52 dinars for buying and 150.55 dinars for selling. This stark contrast highlights the deepening disconnect between official rates and the realities of the informal market, where the euro’s “real” value dominates daily transactions.

The ongoing surge stems from structural imbalances: limited foreign currency supply facing ever-increasing demand. Contributing factors include the needs of the informal economy, unofficial trade operations, and travel-related expenses for education and tourism. Restricted access to foreign currency through banks forces individuals and businesses alike to turn to the black market.

Speculation and uncertainty further amplify this dynamic. As expectations of further rises grow, buyers rush to secure euros, reinforcing the cycle. The absence of swift monetary reforms and a competitive official market continues to feed dependence on this informal system.

The future of the euro in Algeria remains unpredictable. Unless structural constraints ease and the official market becomes more accessible, the parallel exchange rate will continue setting the tone. For now, the euro’s advance toward the 280-dinar threshold underscores its position as a refuge amid a fragile economic landscape.