Historic Collapse of the Dinar Against the Euro: Algeria’s Economy Hits Rock Bottom
Algeria’s economic downfall is accelerating, reaching a dramatic threshold on Tuesday, September 30, 2025. On the black market, 100 euros were traded at 26,650 Algerian dinars, an all-time record that seals the total debacle of the national currency. Never in the country’s recent history has the dinar sunk to such depths.
This vertiginous drop is not a mere monetary fluctuation; it is the glaring symptom of a decrepit military regime’s failure—unable to diversify the economy, shackled to oil revenues, and consumed by sterile ideological battles. While the generals squander billions on propaganda and useless arms purchases, the population watches its purchasing power evaporate day after day.
A Dinar That Is Worthless
Back in July, households were already shaken when the rate hit 26,600 dinars for 100 euros. Just two months later, that threshold has been smashed. Every trip abroad, every import, every personal project has become an inaccessible luxury. The parallel economy is booming, with the black market now the true compass of Algeria’s economy.
The People Pay, the Generals Profit
The official explanations—massive imports of Chinese cars, dwindling foreign currency after the diaspora’s departure—are nothing but excuses. The truth lies elsewhere: Algeria’s economy is in outright bankruptcy, strangled by endemic corruption, mismanagement, and the systematic plundering of military clans.
As ordinary citizens struggle to fill their shopping bags, regime dignitaries secure well-stocked bank accounts abroad, often in euros—an ultimate irony for those who claim to defend “economic sovereignty.”
With a collapsing dinar, rampant inflation, and chronic unemployment, Algeria is heading straight into an unprecedented social crisis. The yawning gap between the official and black-market rates reflects a country where state lies have become the norm. The people know it, the markets confirm it: Algeria lives by the black market because its official economy is already dead.
This Tuesday, the euro did more than just set a record. It once again signed the death certificate of a military system dragging an entire nation down with it.
Translated from Abderrazzak Boussaid’s French article – le7tv
