Algeria to cut reserve requirements

Algeria will reduce reserve requirements for banks from 3% to 2% as of Feb. 15 to help raise funding levels, the central bank said on Monday.

OPEC member Algeria has been under financial pressure for years due to weak global crude prices as oil and gas export revenues account for 60% of the state budget and 94% of total export earnings.

In a bid to ease its reliance on energy, the North African country has announced plans to diversify the economy by developing other sectors.

"This decision is likely to make it possible to free up additional liquidity margins for the banking system," the central bank said in a statement.

"It will further strengthen the financing capacities of banks, in line with the national policy of economic recovery and diversification," it added. - Nampa/Reuters