BANK OF ALGERIA SAYS FOREX RESERVES BY END-2018 WILL BE HIGHER THAN FORECASTS

ALGIERS, -- The level of Algeria's foreign exchange reserves by the end of 2018 will be "distinctly" higher than the 60 billion YS dollars recently forecast by the World Bank, particularly because of the effects of the fiscal consolidation of these reserves, says the Bank of Algeria.

"The level of reserves by the end of 2018 will be distinctly higher than that announced by the World Bank, particularly because of the effects of the fiscal consolidation and its impact on external accounts and correlatively the foreign exchange reserves," the central bank said i a statement in response to a World Bank report on the MENA (Middle East and North Africa) region.

"The World Bank's report on the MENA region fixing the amount of Algeria's foreign reserves, by 2018, at 60 billion dollars seems somewhat alarmist and doesn't rely on convincing hypotheses," said the Bank of Algeria.

This amount "is given without any other details on the main hypotheses on which the economists relied to establish such forecasts."

The Bank of Algeria stressed that the forecasts of the World Bank fixing foreign exchange reserves at 60 billion dollars in 2018 "leave out the foreseeable developments of different indicators determining the improvement of Algeria's foreign exchange reserves".

It added that the only fact was the price of oil which was expected to be between 41 and 60 USD per barrel between 2016 and 2018.

The central bank observed that in the first half of 2016, and for the first time since 2006, Algeria's oil and gas exports increased in terms of volume, in accordance with the forecasts of the state-owned energy group, Sonatrach.

Source: Name News Network