Euro hits record high on Algeria’s black market amid currency crisis

The euro surged to a new historic high on Algeria’s black market in November, trading at up to 27,450 dinars for a 100-euro note, marking a deepening pressure on the informal currency exchange system.

Buyers are offering between 27,050 and 27,150 dinars, widening the gap between buying and selling rates, Algerian outlet Maghreb Emergent reported.

This imbalance signals a persistent excess in demand over supply, driven largely by private vehicle imports that require payment in euros.

With Algeria’s banking system unable to meet this demand, citizens are increasingly turning to the black market, pushing prices upward.

The Algerian dinar has been in steady decline for years. While official exchange rates remain artificially low, the black market reveals the currency’s true value, exposing the disconnect between government figures and ground-level conditions.

This discrepancy has allowed Algerian authorities to inflate GDP figures using the official rate, masking economic vulnerabilities. The real purchasing power of Algerians continues to erode, and the informal market has become a more accurate barometer of the country’s financial health.

Traditional sources of foreign currency- tourism, family remittances, and informal trade- are no longer sufficient to meet growing demand. As a result, liquidity in euros is tightening, and market operators expect the upward trend to continue in the coming weeks.