What is the currency of Algeria?
The official currency used in Algeria is known as the Algerian dinar. Introduced in 1964, the Algerian dinar replaced the colonial Algerian franc at par and was issued in banknotes as well as coins by the Central Bank of Algeria. While the Algerian dinar performed well in international markets in the 1960s, the increased inflation experienced in recent years has had a detrimental effect on its value.
The Algerian Budju
Before the colonization of Algeria by France in the mid-19th century, the official currency in circulation was the budju. The budju was made up of 24 subdivisions known as muzuna. The muzuna was further subdivided either into two kharub or 29 asper. In the period when the budju was the official currency in Algeria, coins were circulated and existed in several denominations including the two asper coin (the lowest existing denomination at the time) and the five asper coin, both of which were minted from copper. Muzuna coins were minted as silver coins and were issued in 3, 4, 6, 8, and 12 denominations. The 1 and 2 budju coins were also minted as silver coins. The sultani was the highest denomination and existed in a quarter, half, and one sultani gold coins. The budju was later replaced by the Algerian franc, which was introduced by colonial French in the 19th century.
The Algerian Franc
The Algerian franc was adopted in 1848 as the official currency in Algeria after the country was colonized by France. During its adoption, the Algerian franc was equal in value to the French franc but was later revalued in 1960 to maintain the parity in value with the French franc. During the 1960-revaluation of the Algerian franc, one newly introduced Algerian franc was equivalent to 100 old Algerian francs. The Algerian franc was made up of subdivisions known as centimes, with 100 centimes making up 1 Algerian Franc. The Algerian franc was replaced by the Algerian dinar in 1964.
The Algerian Dinar
The Algerian dinar is the official currency used in Algeria and is abbreviated in international money markets as DZD. The Algerian dinar was adopted on April 1st, 1964, as a replacement of the Algerian franc at par value after the country gained independence from France in 1962. The term dinar is derived from the Roman term “denarius.” During its adoption, one Algerian dinar was made up of 100 subdivisions known as santeem, which is now defunct. The Central Bank of Algeria issued banknotes of the Algerian dinar in 5, 10, and 100 denominations, as well as coins of the Algerian santeem which were minted in 1, 2, 5, 10, 20, and 50 denominations. Other variations of the Algerian santeems were minted in the 1970s purely for commemorative purposes. However, the Algerian santeem’s existence was short-lived, with the last santeem coins minted in the 1980s. After the withdrawal of the santeem from circulations, the Central Bank of Algeria issued a new series of Algerian dinar coins in 1992, which were minted in 100, 50, 20, 10, 5, 2, 1, a half, and a quarter dinar to replace the obsolete santeem. However, increased inflation experienced in recent years caused all fractional denominations of the dinar to cease from general circulation, with 1 and 2 dinar coins being rarely used. The Central Bank of Algeria added the 500 Algerian dinar banknote in 1970 and the 1000 Algerian dinar note in 1992.
Foreign Use of the Algerian DinarApart from Algeria, the Algerian dinar is also used as currency in the Sahrawi Arab Democratic Republic.