"The sharp fall in the exchange reserves occurred in 2017 has reduced resilience to the external shocks," he warned while presenting the report on Algeria’s economic and monetary evolution in 2016 and 2017, in front of members of the National People’s Assembly (Lower House).
This "demands greater efforts to increase the local supply of goods in order to underpin medium term balance-of-payments sustainability and stopping the erosion of the exchange reserves," he recommended.
The country’s exchange reserves dropped by $16.8 billion in 2017, down from $114.1 billion in the end of 2016 to $97.3 billion in late 2017.
Loukal has explained this decline by an effective fall in the Balance of Payments and also by the "variations of US-dollar and Euro exchange rate."
The national currency exchange rate dropped by 15.36% compared to the Euro in 2017, against 0.59% growth rate in 2016.
"In fact, the value of the dinar has not dropped but the Euro’s has strongly progressed against the dollar in 2017," he explained.
The economic growth hit 2.2% rate in 2017 (against 3.3% in 2016), despite a significant decline in the hydrocarbon growth pace.
The overall deficit of the Balance of Payments stood at $23.3 billion in 2017 against $26.3 billion in 2016.
The average price of the Algerian crude oil rose from $45 in 2016 to $53.97 in 2017.