Abstract
2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Algeria
Relations with the Fund
(As of May 4, 2018)
Membership Status: Joined: September 26, 1963; Article VIII.
General Resources Account
| SDR Million | Percent Quota | |
|---|---|---|
| Quota | 1,959.90 | 100.00 |
| IMF’s holding of currency (holdings rate) | 1,761.82 | 89.89 |
| Reserve tranche position | 198.08 | 10.11 |
| SDR Million | Percent Quota | |
|---|---|---|
| Quota | 1,959.90 | 100.00 |
| IMF’s holding of currency (holdings rate) | 1,761.82 | 89.89 |
| Reserve tranche position | 198.08 | 10.11 |
SDR Department
| SDR Million | Percent Allocation | |
|---|---|---|
| Net cumulative allocation | 1,198.18 | 100.00 |
| Holdings | 897.54 | 74.91 |
| SDR Million | Percent Allocation | |
|---|---|---|
| Net cumulative allocation | 1,198.18 | 100.00 |
| Holdings | 897.54 | 74.91 |
Outstanding Purchases and Loans
None
Financial Arrangements (In millions of SDR)
| Type | Approval Date | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| EFF | 5/22/1995 | 5/21/1998 | 1,169.28 | 1,169.28 |
| Stand-by | 5/27/1994 | 5/22/1995 | 457.20 | 385.20 |
| Stand-By | 6/03/1991 | 3/31/1992 | 300.00 | 225.00 |
| Type | Approval Date | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| EFF | 5/22/1995 | 5/21/1998 | 1,169.28 | 1,169.28 |
| Stand-by | 5/27/1994 | 5/22/1995 | 457.20 | 385.20 |
| Stand-By | 6/03/1991 | 3/31/1992 | 300.00 | 225.00 |
Projected Obligations to Fund
(SDR million; based on existing use of resources and present holdings of SDRs):
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Principal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Charges/interest | 1.93 | 2.59 | 2.59 | 2.59 | 2.59 |
| Total | 1.93 | 2.59 | 2.59 | 2.59 | 2.59 |
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Principal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Charges/interest | 1.93 | 2.59 | 2.59 | 2.59 | 2.59 |
| Total | 1.93 | 2.59 | 2.59 | 2.59 | 2.59 |
Implementation of HIPC Initiative: Not Applicable.
Exchange Rate Arrangement
From January 21, 1974 to October 1, 1994, the exchange rate of the dinar was determined on the basis of a fixed relationship with a basket of currencies, adjusted occasionally. On October 1, 1994, the Bank of Algeria introduced a managed float for the dinar through daily fixing sessions that included six commercial banks. This system has been replaced by an interbank foreign exchange market as of January 2, 1996. On May 5, 2018, the average of the buying and selling rates for the U.S. dollar was US$ 1 = DZD 115.33, equivalent to SDR 1 = DZD 165.09. No margin limits are imposed on the buying and selling exchange rates in the interbank foreign exchange market, except for a margin of DA 0.015 between the buying and selling rates of the Bank of Algeria for the dinar against the U.S. dollar.
The de jure exchange rate arrangement is managed floating and the de facto exchange regime is classified as other managed arrangement with no preannounced path for the exchange rate. Algeria maintains an exchange system free from restrictions on the making of payments and transfers for current international transactions.
Article IV Consultation
Algeria is on a 12-month consultation cycle. The last Article IV consultation was concluded by the Executive Board on May 11, 2017 (IMF Country Report 17/141). The discussions for the 2018 Article IV consultation were held in Algiers from February 27 to March 12, 2018.
Technical Assistance
| STA | Monetary and financial statistics and financial stability indicators | April 2012 |
| MCM | Banking supervision, macro-prudential policy and monetary policy | September 2012 |
| FAD | Public financial management | September 2012 |
| FAD | Subsidy reform | March 2013 |
| FAD | Tax policy | November 2013 |
| MCM | Bank supervision | December 2013 |
| FAD | Tax administration | April 2014 |
| STA | International investment position statistics | September 2014 |
| MCM | Foreign exchange market development | September 2014 |
| FAD | Multiyear budgeting | September 2014 |
| FAD | Tax policy | January 2015 |
| MCM | Interbank financial market development | February 2015 |
| FAD | Organic budget law | April 2015 |
| FAD | Tax administration | April 2015 |
| MCM | Management of foreign exchange reserves | April 2015 |
| RES | Macro-modeling | May 2015 |
| MCM | Macroprudential policies and financial stability | July 2015 |
| MCM | Liquidity management, monetary operations, and interbank market developments | September 2015 |
| MCM | Enhancing bank regulation and supervision | November 2015 |
| FAD | Tax and customs administration | November 2015 |
| MCM | Setting up a liquidity committee | December 2015 |
| FAD | Tax administration | February 2016 |
| MCM | Financial stability and macroprudential policy framework | April 2016 |
| MCM | Liquidity management | May 2016 |
| FAD | Public financial management | July 2016 |
| FAD | Tax administration | October 2016 |
| MCM | Debt market development | October 2016 |
| FAD | Tax administration | November 2016 |
| MCM | Upgrading banking regulations | March 2017 |
| MCM | Forward market development | March 2017 |
| FAD | Tax administration | April 2017 |
| MCM | Collateral framework | July 2017 |
| METAC | Banking supervision | October 2017 |
| FAD | Tax administration | November 2017 |
| FAD | Medium-term budget framework and fiscal risk management | November 2017 |
| MCM | Forward market development (workshop) | November 2017 |
| FAD | Custom administration | December 2017 |
| STA | External sector statistics | January 2018 |
| FAD | Tax policy (local government) | March 2018 |
| METAC | National accounts | March 2018 |
| MCM | Monetary policy and risks to financial stability | March 2018 |
| MCM | Monetary policy operations and liquidity management (long-term expert resident) | October 2016- |
| STA | Monetary and financial statistics and financial stability indicators | April 2012 |
| MCM | Banking supervision, macro-prudential policy and monetary policy | September 2012 |
| FAD | Public financial management | September 2012 |
| FAD | Subsidy reform | March 2013 |
| FAD | Tax policy | November 2013 |
| MCM | Bank supervision | December 2013 |
| FAD | Tax administration | April 2014 |
| STA | International investment position statistics | September 2014 |
| MCM | Foreign exchange market development | September 2014 |
| FAD | Multiyear budgeting | September 2014 |
| FAD | Tax policy | January 2015 |
| MCM | Interbank financial market development | February 2015 |
| FAD | Organic budget law | April 2015 |
| FAD | Tax administration | April 2015 |
| MCM | Management of foreign exchange reserves | April 2015 |
| RES | Macro-modeling | May 2015 |
| MCM | Macroprudential policies and financial stability | July 2015 |
| MCM | Liquidity management, monetary operations, and interbank market developments | September 2015 |
| MCM | Enhancing bank regulation and supervision | November 2015 |
| FAD | Tax and customs administration | November 2015 |
| MCM | Setting up a liquidity committee | December 2015 |
| FAD | Tax administration | February 2016 |
| MCM | Financial stability and macroprudential policy framework | April 2016 |
| MCM | Liquidity management | May 2016 |
| FAD | Public financial management | July 2016 |
| FAD | Tax administration | October 2016 |
| MCM | Debt market development | October 2016 |
| FAD | Tax administration | November 2016 |
| MCM | Upgrading banking regulations | March 2017 |
| MCM | Forward market development | March 2017 |
| FAD | Tax administration | April 2017 |
| MCM | Collateral framework | July 2017 |
| METAC | Banking supervision | October 2017 |
| FAD | Tax administration | November 2017 |
| FAD | Medium-term budget framework and fiscal risk management | November 2017 |
| MCM | Forward market development (workshop) | November 2017 |
| FAD | Custom administration | December 2017 |
| STA | External sector statistics | January 2018 |
| FAD | Tax policy (local government) | March 2018 |
| METAC | National accounts | March 2018 |
| MCM | Monetary policy and risks to financial stability | March 2018 |
| MCM | Monetary policy operations and liquidity management (long-term expert resident) | October 2016- |
Financial Sector Assessment Program
Algeria first participated in the FSAP in 2003. The FSAP was updated in 2007 and in 2013. The Executive Board discussed the Financial System Stability Assessment on January 24, 2014 (IMF Country Report No. 14/161). An FSAP update is scheduled for 2019.
Resident Representative
None.
Relations with the World Bank Group
JMAP Implementation, FY18
(As of Feb 26, 2018)
JMAP Implementation, FY18
(As of Feb 26, 2018)
| Title | Products | Provisional timing of missions | Expected delivery date |
|---|---|---|---|
| A. Mutual Information on Relevant Work Programs | |||
| Bank work program in next 12 months | a. Sector work | ||
| March-June 2018 | Sept. 2018 | |
| March-June 2018 | Dec. 2019 | |
| b. Technical assistance | |||
| April 2018 | ||
| June 2018 | ||
| March-June 2018 | October 2019 | |
| IMF work program in next 12 months | Staff visit | July 2018 | |
| Staff visit | November 2018 | ||
| 2019 Article IV consultation | March 2019 | May 2019 | |
| Continued technical assistance expected in the following areas: | |||
| |||
| |||
| |||
| |||
| |||
| |||
| |||
| FY 2019 | ||
| B. Requests for Work Program Inputs | |||
| Fund request to Bank | Analysis related to subsidy reform Sectoral analysis | As needed As needed | |
| Bank request to Fund | Assessment of macroeconomic stance and prospects | Semiannual (and on ad hoc basis if requested) Ongoing | Following Article IV and staff visits |
| Data sharing | |||
| C. Agreement on Joint Products and Missions | |||
| Joint products in next 12 months | Continuous close coordination on the reform agenda | Ongoing | |
JMAP Implementation, FY18
(As of Feb 26, 2018)
| Title | Products | Provisional timing of missions | Expected delivery date |
|---|---|---|---|
| A. Mutual Information on Relevant Work Programs | |||
| Bank work program in next 12 months | a. Sector work | ||
| March-June 2018 | Sept. 2018 | |
| March-June 2018 | Dec. 2019 | |
| b. Technical assistance | |||
| April 2018 | ||
| June 2018 | ||
| March-June 2018 | October 2019 | |
| IMF work program in next 12 months | Staff visit | July 2018 | |
| Staff visit | November 2018 | ||
| 2019 Article IV consultation | March 2019 | May 2019 | |
| Continued technical assistance expected in the following areas: | |||
| |||
| |||
| |||
| |||
| |||
| |||
| |||
| FY 2019 | ||
| B. Requests for Work Program Inputs | |||
| Fund request to Bank | Analysis related to subsidy reform Sectoral analysis | As needed As needed | |
| Bank request to Fund | Assessment of macroeconomic stance and prospects | Semiannual (and on ad hoc basis if requested) Ongoing | Following Article IV and staff visits |
| Data sharing | |||
| C. Agreement on Joint Products and Missions | |||
| Joint products in next 12 months | Continuous close coordination on the reform agenda | Ongoing | |
Statistical Issues
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision has some shortcomings, but is broadly adequate for surveillance. | |
| National Accounts: National accounts broadly follow the 1993 SNA recommendations. However, nonprofit institutions serving households are not included in the estimates and the coverage of the non-financial corporations and household sectors is weak. Annual national accounts are available since 2001 and quarterly national accounts since 2011. Volume measures are derived at prices of the previous year, then chain linked. Quarterly GDP by expenditure components is not calculated. | |
| Price Statistics: The monthly consumer price index is published with a delay of less than one month. The index reference period is 2001 with weights from 2000. The quarterly producer price index is published with a delay of less than one quarter. The index base period is 1989. | |
| Government finance statistics: Key shortcomings include insufficient institutional coverage (coverage is limited to the central government), classification problems, long lags for production of statistics, and lack of reconciliation of financing with the monetary accounts. Key factors behind these weaknesses include the lack of financial resources allocated to the compilation of statistics, insufficient interagency coordination, and concerns about accuracy that give rise to reluctance to publish provisional data. The authorities have not reported GFS data for publication in the Government Finance Statistics Yearbook since 2011. | |
| Monetary statistics: The central bank of Algeria (BA) submits the monetary statistics for the central bank, other depository corporations (ODCs), and other financial corporations to STA on a timely basis. Monetary statistics are published in the International Financial Statistics. The monetary data are based on the Standardized Report Form (SRF) following the methodology of the Monetary and Financial Statistics Manual and Compilation Guide (MFSMG). | |
| Financial Sector Surveillance: BA reports Financial Soundness Indicators (FSI), which are published on the IMF’s FSI website. However, the periodicity of the data needs to be improved as the FSIs are currently reported only on a yearly basis. | |
| Balance of payments: Balance of payments statistics are of relatively good quality. The data collection system appears comprehensive in terms of payments measurement, but has incomplete coverage of transactions other than settlements (e.g. reinvested earnings) and some position data. A January 2018 TA mission worked with the compilers to address several weak areas, including (i) recording of construction projects as FDI vs. services; (ii) trade statistics; and (iii) FDI position data. Balance of payments and IIP statistics are disseminated regularly on the national website and transmitted to the IMF for re-dissemination in the IFS (2016 are the latest IFS data). | |
| II. Data Standards and Quality | |
| Algeria began participation in the General Data Dissemination System (GDDS) on April 21, 2009. | No data ROSC is available. |
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision has some shortcomings, but is broadly adequate for surveillance. | |
| National Accounts: National accounts broadly follow the 1993 SNA recommendations. However, nonprofit institutions serving households are not included in the estimates and the coverage of the non-financial corporations and household sectors is weak. Annual national accounts are available since 2001 and quarterly national accounts since 2011. Volume measures are derived at prices of the previous year, then chain linked. Quarterly GDP by expenditure components is not calculated. | |
| Price Statistics: The monthly consumer price index is published with a delay of less than one month. The index reference period is 2001 with weights from 2000. The quarterly producer price index is published with a delay of less than one quarter. The index base period is 1989. | |
| Government finance statistics: Key shortcomings include insufficient institutional coverage (coverage is limited to the central government), classification problems, long lags for production of statistics, and lack of reconciliation of financing with the monetary accounts. Key factors behind these weaknesses include the lack of financial resources allocated to the compilation of statistics, insufficient interagency coordination, and concerns about accuracy that give rise to reluctance to publish provisional data. The authorities have not reported GFS data for publication in the Government Finance Statistics Yearbook since 2011. | |
| Monetary statistics: The central bank of Algeria (BA) submits the monetary statistics for the central bank, other depository corporations (ODCs), and other financial corporations to STA on a timely basis. Monetary statistics are published in the International Financial Statistics. The monetary data are based on the Standardized Report Form (SRF) following the methodology of the Monetary and Financial Statistics Manual and Compilation Guide (MFSMG). | |
| Financial Sector Surveillance: BA reports Financial Soundness Indicators (FSI), which are published on the IMF’s FSI website. However, the periodicity of the data needs to be improved as the FSIs are currently reported only on a yearly basis. | |
| Balance of payments: Balance of payments statistics are of relatively good quality. The data collection system appears comprehensive in terms of payments measurement, but has incomplete coverage of transactions other than settlements (e.g. reinvested earnings) and some position data. A January 2018 TA mission worked with the compilers to address several weak areas, including (i) recording of construction projects as FDI vs. services; (ii) trade statistics; and (iii) FDI position data. Balance of payments and IIP statistics are disseminated regularly on the national website and transmitted to the IMF for re-dissemination in the IFS (2016 are the latest IFS data). | |
| II. Data Standards and Quality | |
| Algeria began participation in the General Data Dissemination System (GDDS) on April 21, 2009. | No data ROSC is available. |
Algeria: Table of Common Indicators Required for Surveillance
As of March 28, 2018
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents. Data are partial, because of shortcomings in the compilation of FDI.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); and Not Available (NA), Partially available (PA)
Algeria: Table of Common Indicators Required for Surveillance
As of March 28, 2018
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | 04/18 | 04/24/18 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 03/18 | 05/01/18 | D | M | Q |
| Reserve/Base Money | 03/18 | 05/01/18 | D | M | Q |
| Broad Money | 12/17 | 02/13/18 | D | M | Q |
| Central Bank Balance Sheet | 03/18 | 05/01/18 | D | M | Q |
| Consolidated Balance Sheet of the Banking System | 02/18 | 05/01/18 | M | M | Q |
| Interest Rates2 | 02/18 | 03/11/18 | M | M | Q |
| Consumer Price Index | 03/18 | 04/11/18 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3—Central Government4 | 12/17 | 04/24/18 | M | I | A |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 12/17 | 04/24/18 | I | I | A |
| External Current Account Balance | Q4, 2017 | 03/07/18 | Q | I | Q |
| Exports and Imports of Goods and Services | Q4, 2017 | 03/07/18 | Q | I | Q |
| GDP/GNP | Q4, 2017 | 04/12/18 | A | A | A |
| Gross External Debt | Q4, 2017 | 03/07/18 | Q | I | Q |
| International Investment Position6 | 2016 | 10/11/17 | I | I | NA |
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents. Data are partial, because of shortcomings in the compilation of FDI.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); and Not Available (NA), Partially available (PA)
Algeria: Table of Common Indicators Required for Surveillance
As of March 28, 2018
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | 04/18 | 04/24/18 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 03/18 | 05/01/18 | D | M | Q |
| Reserve/Base Money | 03/18 | 05/01/18 | D | M | Q |
| Broad Money | 12/17 | 02/13/18 | D | M | Q |
| Central Bank Balance Sheet | 03/18 | 05/01/18 | D | M | Q |
| Consolidated Balance Sheet of the Banking System | 02/18 | 05/01/18 | M | M | Q |
| Interest Rates2 | 02/18 | 03/11/18 | M | M | Q |
| Consumer Price Index | 03/18 | 04/11/18 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3—Central Government4 | 12/17 | 04/24/18 | M | I | A |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 12/17 | 04/24/18 | I | I | A |
| External Current Account Balance | Q4, 2017 | 03/07/18 | Q | I | Q |
| Exports and Imports of Goods and Services | Q4, 2017 | 03/07/18 | Q | I | Q |
| GDP/GNP | Q4, 2017 | 04/12/18 | A | A | A |
| Gross External Debt | Q4, 2017 | 03/07/18 | Q | I | Q |
| International Investment Position6 | 2016 | 10/11/17 | I | I | NA |
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents. Data are partial, because of shortcomings in the compilation of FDI.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); and Not Available (NA), Partially available (PA)