Algeria Allows Banks to Provide Islamic Financing Services

  • Algiers, People's Democratic Republic of Algeria
  • 4 August 2020

Algeria has given the green light to banks to provide Islamic financing services, in the context of seeking to find new sources of financing to face the financial problems caused by low energy revenues, as Algeria was affected by the drop in the price of oil, especially after the Corona pandemic, which forced the government to cut spending and postpone some investment projects planned for 2020.

“The National Bank of Algeria” became the first government bank to obtain a “Shari'a Compliance Certificate” from the “National Sharia Board for Fatwa for the Islamic Financial Industry.” In return, the Commission is considering granting Shari'a Compliance certificates to market Islamic banking products to other banking and financial institutions.

The dinar registered a record decline against foreign currencies in official transactions, so that the Algerian currency continues to lose points, continuing this track down against foreign currencies. The official exchange markets were negatively affected by the recession that hit the Algerian economy since March, due to the outbreak of the Coronavirus, and the decline in the country's foreign exchange revenues, with oil prices losing 60% of their value during the first quarter of the year 2020, as the dinar lost its cohesion against the dollar and the euro in banking transactions.

Source (New Al-Arabi website, Edited)

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