Editorial transparency. This article is published by Algeria Tourism. Our team also publishes the Dinar DZ mobile app mentioned below, and our marketplace offers a payment method adapted to the diaspora. The figures and legal rules are sculpted and dated.
If you have family in Algeria or travel there regularly, you must have heard two very different figures for 1 euro: around 154 dinars at the official rate, and around 278 dinars at the square (the local name of the parallel currency market). A difference of approximately 80% as of May 18, 2026. This article explains why, without judgment, and what this implies in practice — with the new customs rules of the Financial Law 2026.
Why two rates in Algeria?
Algeria has a exchange control system. This means that the conversion between foreign currency and dinar is supervised by the Bank of Algeria, which sets daily the official rate and limits the amount of foreign currency that a resident can buy.
Specifically:
- You can't ** freely buy euros or dollars** from an Algerian bank with an account in dinars (except in very specific cases: travel abroad with a capped tourist allowance, medical care).
- On the other hand, to convert euros into dinars to the bank is possible, but at the official rate.
- Since foreign exchange demand is higher than official supply, a informal market has naturally developed. This is called the "square" (place of the Port Said in Algiers, named after the emblematic place where this market has historically been held).
This is not an Algerian specificity. Many countries with foreign exchange controls — Argentina, Egypt before 2024, Lebanon, Iran, Venezuela — saw this dual system appear.
How is the official rate set?
The Bank of Algeria determines daily the dinar rate against a basket of currencies (mainly euro, US dollar, pound sterling). This rate is used for:
- banking operations (international transfers, conversions of accounts)
- Customs (calculation of import duties)
- payments by Algerian or foreign bank card in the territory
- public contracts and official external trade
On 18 May 2026, the official rate is 154.3 DA for 1 EUR and 132.7 DA for 1 USD (source: Bank of Algeria, raised via Wise). These figures change slightly every day.
How does the parallel market work?
The "square" is an informal market where exchangers offer free currency supply and demand rates. It has no legal existence, but its operation is widely documented in the Algerian press (TSA, El Watan, Freedom before its closure, Algeria Eco). The rates displayed are public and vary daily.
The main drivers of this market:
- Request for currency by individuals who wish to travel, import goods, or cover expenses abroad
- The offer fed by the diaspora that brings back or sends euros during summer stays
- Inflation gap between Algeria and the euro area/dollar
On 18 May 2026, the changers posted around 277 DA on purchase / 279 DA on sale for 1 EUR, and 237 / 239 DA for 1 USD.
The difference in figures: multi-year trend
The difference between the two rates varies historically between 40 and 80% depending on the economic situation (oil prices, foreign exchange reserves, trade balance). Here are some benchmarks (orders of magnitude of annual averages publicly reported, not to be confused with a daily price):
- Year - Official EUR (order of magnitude) - Square EUR (order of magnitude) - Approximate difference
• 2020
- 2022 - 140 DA - 220 DA - +57 %
— 2024
For a reliable daily course, see the "Follow Rates" section below.
Why does this gap persist?
Three main factors:
- ** Exchange control** limits the legal supply of currency. Travellers, importers and entrepreneurs are looking for an alternative.
- hydrocarbons finance the Algerian budget: when oil drops, foreign exchange reserves decline, and pressure on the dinar increases.
- Inflation differential: Algerian inflation (~9% in 2024-2025) is higher than that of the euro area. Mechanically, the purchasing power of the dinar is eroded faster, but the official rate remains stable by political decision.
As long as legal and informal currency flows coexist, the gap will remain structural.
What changes in 2026: the Finance and Customs Act
This is the most important novelty of this article, and it changes the way the diaspora must approach the exchange in Algeria. Finance Act 2026 (section 129) tightened the rules for reporting and justifying currencies.
Entry and exit reporting thresholds
• Traveling profile
- Algerian resident €1,000 (or equivalent)
- Non-resident Algerian (diaspora)
€1,000 (Unified Threshold, Finance Law 2026)
Source: Directorate General of Customs, Finance Act 2026, art. 129.
These thresholds apply to both entry and exit**. Under the threshold, no reporting. Above, the customs form is mandatory and stamped.
The great novelty: proof of exchange on exit
Starting in 2026, the non-resident traveller must submit proof of the foreign exchange transactions carried out during his stay in order to be able to exit with a balance of converted currencies or dinars (source: Ilboursa, DGD communications).
In concrete terms, this means:
- If you have changed your euros at the bank, you have an official receipt → you can go out with the unspent balance.
- If you have changed to the square, you have no proof → you cannot theoretically have a residual balance converted or exported without risking a customs freeze.
- If you spent everything on site (stay, purchases, transport) and you leave with less than €1,000, no justification is required at the exit.
Maximum amount exportable from a currency account
The balance of a foreign exchange account opened in Algeria can be exported up to a maximum of € 7,500 per calendar year (annual ceiling, splitable on several trips — source: DGD).
Clear for Diaspora
- Yes. Usability Case: Compatible 2026? - Yes.
Change the square and spend entirely on the spot.
- Change to square and leave with a balance > 1 000 €
Change at the bank (official rate) and leave with a balance.
Bring > €1,000 to the entrance without declaring a customs violation
Concrete consequences for the diaspora
The exchange rate differential has a direct effect on the real cost of a stay or transfer to Algeria, as long as the sums remain in the country.
Example: A stay of 100 000 DA (rent 7 nights + restaurants + activities)
Method of payment
100% credit card (official rate ~154)
- 100 % cash changed in square (~278) - 360 €
Difference
For a family transfer of 1000 € :
- Bank transfer (official rate): ~154,000 DA
- Species returned to square: ~278,000 DA
- Difference: 124 000 DA — about 80 % more square
It is these differences that explain why the diaspora arrives in Algeria with euro liases rather than with a bank card — provided that everything is spent on the spot and the reporting thresholds are respected.
Track rates in real time
Rates move daily, and a 5 DA spread over the euro can amount to several hundred euros on a large sum. Here are the sources we can use today:
- History, variable alerts and integrated converter.
(https://apps.apple.com/app/taux-dinar-dz/id6764266554)
(https://play.google.com/store/apps/details?id=com.algerietourism.sardzd)
- TSA (All about Algeria) occasionally publishes the square course in its current economic articles.
- forexalgerie.com and some Telegram accounts give indicative rates (to check because sometimes one to two days late).
- Bank of Algeria publishes the official rate on bank-of-algeria.dz.
Algeria Tourism option : on-line deposit + on-site expenditure
Algeria Tourism integrates this reality into its payment model. For hosts who accept it, the hybrid mode is available:
- Discount from 15 to 30 % paid online by card (EUR or USD, secured via Stripe)
- Sold in cash dinars delivered to the host upon arrival
It is a format adapted to 2026: all cash is spent on site with the host, restaurants, excursions. You do not come out of the country with a foreign exchange balance to justify, so the customs subject does not arise as long as you remain below the threshold of €1,000 at entry and exit.
View accommodation in Algeria
Learn more about diaspora payment
In summary
- Algeria applies a exchange control which structurally creates two rates for the dinar.
- On 18 May 2026: official rate ~154 DA/EUR, square rate ~278 DA/EUR, deviation of about 80 %.
- The Financial Act 2026 (art. 129) lowers the customs declaration threshold to € 1,000 for all travellers — residents, diasporas and foreigners, without distinction as to status — and now imposes a exit exchange adjustment for non-residents.
- The exchange rate gap remains usable for the diaspora, provided that all ** is spent on-site** or changed at the bank if there is room for manoeuvre.
- To track both rates daily, the Taux Dinar DZ app is free on iOS and Android.
Sources: Bank of Algeria (official rates); TSA, El Watan, Algeria Eco (parallel market coverage); Directorate General of Algerian Customs and publication Finance Law 2026 (art. 129); Ilboursa, ViPresse, Visas & Travel Algeria. Article dated May 18, 2026—thresholds and rates change, check first any travel.