Bank of Algeria Tightens Rules on Returning Export Money
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The Bank of Algeria, the country's central bank, has decided to make its rules stricter for exporters who bring foreign money back into Algeria. This process is known as repatriation of foreign currency. It means that companies which sell goods abroad must return the money they earn to the Algerian financial system, instead of keeping it in foreign accounts.
At the same time, the bank has ended a rule that required exporters to get a special preliminary visa before sending goods abroad. This means one part of the export process will now be simpler, even though the rules on returning money have become tougher. The change is meant to give the state more control over foreign currency entering the country.
Tarek Boulmerka, the president of Anexal, an organisation that represents Algerian exporters, spoke about these new measures in an interview with the newspaper Horizons. Anexal often comments on regulations that affect the country's export businesses, since these rules can make trading with foreign markets easier or harder.
Algeria has been trying to increase its non-oil exports in recent years, as the government wants to reduce its dependence on oil and gas sales. Rules about foreign currency play an important role in this effort, because they affect how easily companies can manage the money they earn abroad.
The end of the preliminary visa may make it quicker for companies to start exporting. However, the stricter repatriation rules could put more pressure on businesses to bring their earnings home fast. It is not yet clear exactly how the new system will work in detail, but exporters are expected to follow it closely in the coming months.
Vocabulary10 words
- repatriation of foreign currency
- bringing money earned abroad back to your own country
- preliminary visa
- a document you need before you can do something
- regulations
- official rules
- non-oil exports
- goods sold abroad that are not oil or gas
- central bank
- the main bank that controls a country's money system
- financial system
- the way money moves in a country
- organisation
- a group formed for a certain purpose
- dependence
- needing something a lot
- pressure
- a strong push to do something
- measures
- actions taken to solve a problem
Quiz
Answer key
1. Made the rules stricter 2. The preliminary visa requirement 3. The president of Anexal
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
The Bank of Algeria, the country's central bank, has decided to make its rules _____ for exporters who bring foreign money back into Algeria. This process is known as _____. It means that companies which sell goods abroad must return the money they earn to the Algerian financial system, instead of keeping it in foreign accounts.
At the same time, the bank has ended a rule that required exporters to get a special _____ before sending goods abroad. This means one part of the export process will now be simpler, even though the rules on returning money have become tougher. The change is meant to give the state more _____ over foreign currency entering the country.
Tarek Boulmerka, the _____ of Anexal, an organisation that represents Algerian exporters, spoke about these new measures in an interview with the newspaper Horizons. Anexal often comments on _____ that affect the country's export businesses, since these rules can make trading with foreign markets easier or harder.
Algeria has been trying to increase its _____ in recent years, as the government wants to reduce its _____ on oil and gas sales.
Discussion questions
- Why might a government want stricter rules on bringing foreign money back into the country?
- Do you think ending the preliminary visa will help exporters? Why or why not?
- How could these rules affect small businesses compared to large companies?
- Why is it important for a country to increase its non-oil exports?