Algiers – The Bank of Algeria has introduced new measures restricting cash deposits into commercial accounts, signaling a potential shift in the nation’s economic structure. The directive mandates a near-exclusive reliance on paper-based payment methods, such as transfers and checks, with limited exceptions for justified circumstances.
This policy, outlined in memorandum number 02/DGIG/2025, is viewed as more than a temporary technical adjustment. It is understood to be part of a broader effort to refine financial governance, strengthen compliance with anti-money laundering and counter-terrorism financing standards, and align the national banking system with international transparency requirements.
Dr. Houari Tiguerci, an economist and lecturer at Ben Aknoun University, suggests that this directive represents a strategic turning point in monetary control. Speaking to DZWatch, he explained that the emphasis on non-cash deposits is not solely aimed at controlling liquidity but rather at restructuring its pathways and subjecting it to traceability and accountability.
“Tightening the grip on cash does not signify a war on economic activity,” Dr. Tiguerci stated, “but rather a recalibration of the financial rules of the game, ensuring a distinction between legitimate flows and those that have remained untracked for decades.”
The directive reflects a clear transition from adapting to an existing monetary reality to actively reshaping it. The central bank, according to this perspective, is no longer merely a regulator of liquidity but a central player in engineering economic governance by focusing on the source, pathway, and traceability of funds. This shift comes within a global context where paper money is no longer simply a medium of exchange but a risk factor in financial systems seeking transparency and stability.
The move aims to dry up sources of the parallel economy through financial tracking rather than superficial treatment. By focusing on traceability, authorities hope to gain better insight into financial flows and combat illicit activities.
DZWatch will continue to monitor the implementation of these new regulations and their impact on the Algerian economy.
