Algeria: Financial System Stability Assessment

This stability report assesses the stability of the Algerian financial system as a whole. This FSAP follows the 2007 report for Algeria. It reports that given the small size of Algeria’s financial system, significant state ownership, and its limited integration into international financial markets, there are no pressing financial stability concerns. Instead, the immediate challenge is to harness the financial sector’s potential to support diversification and economic growth. This will be helped by a broad range of reforms to promote financial deepening, as well as greater intertemporal smoothing of hydrocarbon revenue, a more strategic role for the state, and careful phasing out of restrictive exchange measures.