Algeria’s foreign reserves hit lowest level since 2018

In its semi-annual bulletin, the Bank of Algeria announced a sharp decline in its foreign reserves, with the Central Bank warning of the “structural fragility” of the Algerian economic model. The fall to $39.6 billion at the
end of June 2025, compared to $51.4 billion six months earlier, is the lowest level since 2018. The contraction occurred mainly due to an increase in imports, as well as the decline in hydrocarbon export revenues. Food imports accounting for most of the rise, exacerbated by recent prolonged periods of drought, the depreciation of the dinar, and the surge in wheat and powdered milk prices.