Algeria Calls Time On Quantitative Easing

28 Jun 2019 Issue: 62 / 26 By: James Cockayne

Algeria will no longer print money to finance its chronic deficits. The architect of the plan – which the central bank now calls “unjustified” – is in jail. But policies that would put the economy on track look no nearer.

An Algerian government spokesman on 23 June confirmed that “the era of non-conventional financing is over” confirming a policy shift indicated by the Bank of Algeria in a 1 April research note. This said, the program, initiated in September 2017(MEES, 15 September 2017) was “unjustified right from the start” with “conventional financial means yet to reach their limits.”

In turn it’s likely not a coincidence that this trashing of the government’s former flagship economic policy came just three weeks after the ‘resignation’ of former prime minister and architect of the 2017 economic “crisis plan,” Ahmed Ouyahia. Mr Ouyahia was ousted in early March following former President Abdelaziz Bouteflika’s forced resignation (MEES, 5 April). He is currently in jail on corruption allegations. (CONTINUED - 487 WORDS)