On Monday, Algerian Minister of Communication Ammar Belhimer reported to the press that the fall in oil prices should lower oil and gas export earnings for the year to 20.6 billion dollars, well below the $ 37.4 billion announced earlier.
The country also expects that this will cause foreign exchange reserves to drop to $ 44.2 billion by the end of 2020. According to forecasts published a few weeks ago, the level of currencies should drop to $ 51.6 billion this year.
As a reminder, Algeria’s foreign currency reserves fell to less than $ 60 billion at the end of March, compared to nearly $ 80 billion at the end of 2018 and more than $ 97 billion at the end of 2017. All of this, at because of the high volatility of oil prices since 2014.
Financial pressures that have increased since the start of the Covid-19 pandemic have forced Algiers to reduce spending and investment planned for this year in several sectors, including hydrocarbons. Sonatrach has therefore decided to halve its investments for 2020.
Source: Agence Ecofin