Algeria’s foreign exchange reserves fell 11.1% in the first six months of 2015 as a result of weaker oil prices, the central bank informed.
Bank of Algeria Governor Mohamed Laksaci was quoted by the APS news agency as saying the “sharp contraction” to the “external shock on Algeria’s balance of payments since the fourth quarter of 2014,” Afp reported according to Yahoo! News.
Reserves dropped from $178.9b on December 31 to 9b at the end of June.
However, Laksaci said reserves were more than sufficient to meet the demands of the country’s foreign debit, which stood at $3.4b at the end of June.
Algeria’s primary source of revue is hydrocarbons, and the fall in prices took revenues from $63b in 2013 to $58.4b last year.
Algeria, which depends on oil and gas for 94% of its exports, has been hit hard by the halving in oil prices over the past year or so. And according to AP the government is planning to raise taxes on diesel, 3G internet, and electricity. Customs duties will also be increased on imported computers and computer parts.