ALGERIA

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With a 47 million population and a $206.5bn GDP in 2024, Algeria is a hydrocarbon‑dependent economy, underpinned by its sizeable international reserves and historic net positive asset position (net international investment position of about +23% of GDP in 2022), largely reflecting its foreign currency reserves relative to modest liabilities. 

External public debt is extremely low (1.3% of GDP in 2022, projected to remain around 1.2% through 2028). Algeria’s main vulnerability is the commodity‑price dependence: hydrocarbons account for roughly 30% of GDP and nearly 95% of export earnings, making the current account and fiscal balances subject to oil and gas price swings. The current account swung from negative to a surplus of about 7.6% of GDP in 2022 before reserve drawdowns are projected into the mid‑2020s. 

Public debt is moderate — estimated near 55% of GDP in 2023, with a fiscal deficit around –3% of GDP in 2023–24. Structural reforms—aimed at diversifying the economy, liberalizing exchange rate flexibility, and improving the business climate — remain critical to reduce dependence on hydrocarbons. 

Over the medium term, the NIIP is projected to decline to below 9% of GDP by 2027 due to shrinking reserves and growing external liabilities as diversification lags.

Summary

BNP Paribas El-Djazaïr was launched in 2002 and is one of only a few international banks in Algeria. The bank has actively developed its capabilities, which include card issuing and acquiring, and has become a reliable and trusted partner both for corporations and retail customers, with 13 business centres supporting both Algerian companies operating internationally and foreign companies doing business in the country.

BNP Paribas is one of the top 3 retail banks in sub-Saharan Africa with a well-established African network across 9 countries: Algeria, Tunisia, Morocco, Senegal, Guinea, Ivory Coast, Burkina Faso, Gabon and Mali. The bank offers a full range of products and services, with experienced sales, support and product teams across 676 branches and 36 corporate business centres.

Currency

  • Algerian dinar (DZD)

Bank accounts

  • A company is considered resident in Algeria if it is incorporated in Algeria.
  • Branches of foreign companies and permanent establishments are also considered resident for tax purposes.

BNP Paribas Cash Management Capabilities

Cash collections
Cheque collections
Direct debit collections
Domestic incoming transfers
Virtual IBAN
Virtual accounts
International incoming transfers
Card acquiring

Payments & collections

Algeria is largely a cash-based economy. Payment card penetration rate is low but rising as consumers become more comfortable using cards as a payment method. For example, in Q1 2021, there were 1,782,213 internet transactions carried out by CIB and Edahabia cards, a 340.65% increase on the same period 2020. Value rose from DZD 634 million to DZD 2.2 billion.

The government is keen to encourage the use of electronic payments and as such in September 2020, made the use of all electronic payments free of charge. As of 31 December 2020, all merchants were required to set up infrastructure to enable cashless transactions. Merchants without the means to receive electronic payments are required to set up a remote payment service, i.e. the TPE QR Code, by end-2021.

Limited electronic banking services are available from some banks. These services are primarily used by larger companies. There is no national electronic banking system in Algeria, so companies use banks’ proprietary services.

Limited online and mobile banking services are provided by the country’s leading banks. The use of digital financial services is low: 16% of adults use digital payments.

 

Short term investments

Interest payable on credit balances

  • Interest-bearing accounts are permitted.

Demand deposits

  • Demand deposits denominated in DZD are available.

Time deposit money market instruments

  • Time deposits are available in DZD or major foreign currencies (USD, GBP, CHF and EUR). Minimum tenor is three months for DZD deposits. Foreign currency deposits have a minimum tenor of one month.
  • The minimum investment for DZD-denominated time deposits is DZD 10,000.
  • Interest rates are generally set by Banque d'Algérie.

Certificates of deposit

  • Domestic banks issue medium term notes with terms ranging from three months to four years. These are negotiable instruments.

Treasury (government) bills

  • The Banque d'Algérie issues Treasury bills for terms of 13 and 26 weeks.

Commercial paper

Money market funds

  • Money market funds are not popular short-term investment instruments.

Repurchase agreements

  • Repurchase agreements are available in Algeria.

Banker's acceptances

  • Banker's acceptances are not used in Algeria.

BNP Paribas Trade Finance Capabilities

Documentary credits
Documentary collections

International trade

  • As a member of the Greater Arab Free Trade Area (GAFTA), Algeria has eliminated most trade tariffs with GAFTA member states. GAFTA comprises Algeria, Bahrain, Egypt, Iraq, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen.