Algerian professor Mohamed-Chérif Benmihoub has emphasized the need for a swift transition period to avoid exacerbating the country's economic woes. Speaking on the radio, Benmihoub stated that a prolonged transition period would lead to missed investment opportunities and have far-reaching consequences for the nation's economy. He advocated for a short transition period and the organization of presidential elections as soon as possible.
Benmihoub stressed the importance of exploiting the current Constitution and avoiding the opening of new dossiers that could lead to dead ends. He acknowledged the legitimacy of the popular movement and warned that failure to address it could lead to chaos. The professor noted that Algeria's economy is already struggling with low growth rates and that without foreign exchange reserves, the country would be in a dire situation.
According to Benmihoub, the current crisis, marked by institutional instability and deteriorating public finances, poses serious problems. He expressed concerns that the unclear institutional situation could deter economic operators from making significant commitments. The professor argued that meaningful reforms cannot be implemented by a transitional government and that a clear plan is needed to move forward.
Benmihoub called for the implementation of safeguard measures, including placing the management of foreign exchange reserves under the supervision of a special committee rather than solely in the hands of the Banque d'Algérie. He also advocated for stricter controls on public treasury management to prevent uncontrolled spending.
The professor highlighted the need for prudent management of public finances, citing the example of the money printing press, which has produced 6,500,000 billion dinars, while banks are facing a liquidity surplus. He emphasized that maintaining investment in hydrocarbons is crucial for the country's economic recovery.
Benmihoub's comments come at a time when Algeria is facing significant economic challenges. He urged for a swift resolution to the current crisis, warning that further delays could have severe consequences for the nation's economy. The professor's call for a short transition period and swift elections has resonated with many Algerians who are eager for stability and economic growth.
As the country navigates this critical period, Benmihoub's recommendations have sparked a necessary conversation about the need for effective economic management and a clear plan for the future. His emphasis on maintaining investment in hydrocarbons and implementing safeguard measures has highlighted the importance of a comprehensive approach to addressing Algeria's economic woes.
Key points
- Algerian professor Mohamed-Chérif Benmihoub warns of economic repercussions if transition period is prolonged.
- Benmihoub advocates for a short transition period and swift presidential elections.
- The professor calls for safeguard measures, including stricter controls on public finances and foreign exchange reserves.
