Checking the exchange rate between the Algerian dinar to US dollar isn't as simple as googling a number and heading to the bank. Honestly, it's a bit of a maze. If you look at the official charts today, you’ll see 1 USD hovering around 130 DZD. But ask anyone on the streets of Algiers—specifically near Port Said Square—and they'll give you a completely different story.
There is a massive gap here.
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Most people don't realize that Algeria operates on a dual-track system. You have the official rate, managed by the Bank of Algeria, and then you have the "Square" rate, which is the informal black market. The difference isn't just a few cents; it's often a gulf that dictates how people actually spend their money.
The Reality of the DZD to USD Exchange
Why is the official rate so different from the street? Basically, the government keeps a tight grip on foreign currency. If you're an Algerian citizen looking to travel, your official "tourist allowance" is incredibly small—barely enough to cover a decent dinner in New York or Paris for a couple of days.
This scarcity drives everyone to the informal market.
In the official banking sector, the Algerian dinar has actually shown some surprising stability recently. As of mid-January 2026, the rate has stayed steady between 129.50 and 130.15 DZD per dollar. This is largely because the government is flush with cash from hydrocarbon exports. When oil and gas prices are high, the Central Bank has the "muscles" to keep the dinar from sliding.
What moves the needle?
- Hydrocarbon Prices: Algeria is a "petrostatal" economy. If Brent crude drops, the dinar usually feels the heat, even if the government tries to shield it.
- Import Restrictions: To save those precious dollars, the government often restricts what can be brought into the country. Fewer imports mean less demand for dollars in the official system, but higher prices for goods on the shelf.
- Political Stability: Changes in leadership or policy shifts regarding foreign investment can cause ripples.
- Inflation: Currently projected around 3.9% for 2026, inflation eats away at the dinar's local purchasing power, making the dollar even more attractive as a "store of value."
The Black Market Factor
You can't talk about the Algerian dinar to US dollar without talking about the parallel market. It's the elephant in the room. For most locals, the "real" price of a dollar is what they can get at Port Said. Historically, the black market rate can be 50% to 70% higher than the official bank rate.
Why does this happen? It’s simple supply and demand.
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Businesses that can't get enough foreign currency through official channels to buy inventory from abroad turn to the parallel market. Families saving for the future do the same. They don't trust the dinar's long-term value, so they "dollarize" their savings. It’s a survival tactic.
Practical Tips for Travelers and Expats
If you're heading to Algeria, you've got to be smart about your cash. Don't just show up and swipe your credit card everywhere.
First, realize that international cards (Visa/Mastercard) are accepted in high-end hotels and some big stores in Algiers, but the "real" Algeria runs on cash. If you use your card, you are getting the official 130 DZD rate. If you bring physical US dollars and exchange them through informal (though technically illegal) channels, your money could go nearly twice as far.
Kinda crazy, right?
But there's a risk. Dealing in the informal market isn't regulated. You have to know who you're talking to. Most travelers stick to the official bureaus for safety, even if it's more expensive.
A Quick Look at the Numbers (January 2026)
| Date | Official Rate (1 USD to DZD) | Trend |
|---|---|---|
| Jan 1, 2026 | 129.56 | Baseline |
| Jan 10, 2026 | 130.14 | Slight DZD Weakening |
| Jan 18, 2026 | 130.07 | Stabilizing |
The Bank of Algeria recently lowered its key interest rate to 2.75%. This was a move to boost the non-oil economy. While this is good for local businesses, it can sometimes put downward pressure on a currency. However, the government seems more focused on keeping things steady for now to avoid social unrest from rising prices.
Looking Ahead
What’s the move for the rest of 2026?
The IMF and the African Export-Import Bank both suggest that the dinar will stay relatively "protected" as long as energy revenues are strong. But keep an eye on the 2026 Finance Act. The government is trying to balance supporting people's purchasing power with the need to diversify the economy away from just oil.
If you are holding Algerian dinars, the smartest thing to do is watch the oil charts. If energy prices take a dive, expect the gap between the official and black market rates to widen even further.
For those looking to convert Algerian dinar to US dollar, your best bet for the "real" rate is to track the local news and the "Square" updates, rather than just the official banking apps.
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Next Steps for You:
If you're planning a trip or a business transaction, check the Bank of Algeria's official weekly banknote quotations for the legal floor price. Then, consult with a local contact to see what the "market" is actually doing. Always carry a mix of cash and a travel-friendly debit card like Wise or Revolut, but remember that in Algeria, the physical dollar is still king of the street.