Algeria Expects Foreign Reserves to Decrease to $76bn in 2020

A general view of the upper parliament chamber is pictured in Algiers, Algeria. (Reuters)
A general view of the upper parliament chamber is pictured in Algiers, Algeria. (Reuters)
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Algeria Expects Foreign Reserves to Decrease to $76bn in 2020

A general view of the upper parliament chamber is pictured in Algiers, Algeria. (Reuters)
A general view of the upper parliament chamber is pictured in Algiers, Algeria. (Reuters)

Algerian Finance Minister Abderrahmane Raouia expected foreign reserves in his country to decrease to $76.2 billion by the end of 2020.

Over the past few years and wit the drop in oil prices, financial pressure increased on Algeria and its major dependency on oil revenues.

Oil and gas revenues comprise about 60 percent of Algeria's budget and 95 percent of total exports.

The status of international energy markets reflected on the country's foreign reserves, which fell from $192 billion in 2014 to $108 billion in mid 2017.

During his presentation of the 2018 Algerian budget before the People's National Assembly, Raouia stated that Algeria's foreign reserves reached $102.4 billion at the end of September, expecting it to decrease to $85.2 billion at the end of 2018.

The minister also stated that the reserves will drop to $79.7 billion at the end of 2019.

Algerian daily Akhbar el-Youm reported that the 2018 budget includes procedures to increase oil prices and impose the new wealth tax.

The tax applies to people who own a wealth exceeding 50 million Algerian dinar, according to the newspaper.

In October, the parliament approved amendments to the Money and Credit Law to allow the central bank for the first time to lend directly to the public treasury to finance budget deficits and internal public debt and provide resources for the coming five years.

Algeria’s economy should grow by 4 percent in 2018, up from the 2.2 percent forecast for this year, as oil prices recover, the government said in a document according to Reuters.

The government anticipates inflation reaching 5.5 percent next year, unchanged from its projection for 2017, according to the document, which is part of the draft budget for 2018.



Davos to Welcome Trump Virtually as World Leaders Await New US President’s Policies

Former US President and Republican presidential candidate Donald Trump speaks during an election night event at the West Palm Beach Convention Center in West Palm Beach, Florida, on November 6, 2024. (AFP)
Former US President and Republican presidential candidate Donald Trump speaks during an election night event at the West Palm Beach Convention Center in West Palm Beach, Florida, on November 6, 2024. (AFP)
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Davos to Welcome Trump Virtually as World Leaders Await New US President’s Policies

Former US President and Republican presidential candidate Donald Trump speaks during an election night event at the West Palm Beach Convention Center in West Palm Beach, Florida, on November 6, 2024. (AFP)
Former US President and Republican presidential candidate Donald Trump speaks during an election night event at the West Palm Beach Convention Center in West Palm Beach, Florida, on November 6, 2024. (AFP)

Donald Trump will mark his return to the global stage with a virtual World Economic Forum appearance in Davos next week, as world leaders await details of the incoming US President's policies and his pledge to end the war in Ukraine.

Trump is due to return to the White House on Jan. 20, with his inauguration for a second term as US President coinciding with the start of the 55th annual WEF meeting of political and business leaders in the Swiss mountain resort.

Meanwhile, another key player in any attempt to bring peace to Ukraine, the country's President Volodymyr Zelenskiy, will make a special address and take questions, the WEF meeting organizers said on Tuesday.

Among the other global leaders due to attend the meeting, which will include 60 heads of state and government, are European Commission President Ursula von der Leyen and China's vice premier Ding Xuexiang, WEF President and CEO Borge Brende said during a press conference.

Brende said Trump, who has twice previously attended Davos, will join "digitally" on Jan. 23, without giving further details. He said it would be a "very special moment" to learn about the new Trump administration's policy priorities.

"There is a lot of interest to decipher and to understand the policies of the new administration, so it will be an interesting week," Brende said.

Topics on the Davos agenda range from mounting global geopolitical and economic uncertainty to trade tensions, climate goals and how AI can help make lives better.

Business leaders have become more optimistic about the economy given Trump's pledges to reduce regulation, potentially cut taxes and ease restrictions on activities including mergers and acquisitions, Rich Lesser, global chair of Boston Consulting Group, told Reuters ahead of the meeting.

Lesser said, however, that underlying optimism is being offset by concerns about tariffs, deportations, a widening budget deficit and the US relationship with China.

MIDDLE EAST

This year's meeting in Davos is taking place against "the most complicated geopolitical backdrop in generations," Brende said, adding that the forum will have a strong focus on Middle East geopolitics, including high-level diplomatic talks.

Delegates will discuss developments in Syria and the humanitarian crises in Gaza and Yemen alongside other topics.

Participants will include Qatar's Prime Minister, the Saudi Arabian Foreign Minister, Syria's foreign minister, the UN special envoy on Syria, the Iranian Vice President, Israel's President and the Palestinian Prime Minister.

"There will be a hard work at the situation in Syria, the terrible humanitarian situation in Gaza ... the potential escalation of the conflict in the Middle East. We were very close to it between Israel and Iran, and I don't think we're out of the woods yet," Brende said.

CLIMATE

The WEF will this week release an analysis looking at companies that account for two-thirds of global market capitalization, which will show that only about 10% are taking meaningful and tangible action on the climate and nature agenda.

Business and political leaders gathering in Davos from Jan. 20 to Jan. 24 are also due to discuss how to ensure energy remains affordable, secure and green and the challenges preventing acceleration of efforts towards energy transition.

"We’re in a really challenging moment for climate, where countries are asking if other nations are doing their share," said Boston Consulting Group's Lesser.