Algeria lifts restrictions on banking operations with Spain

Algeria's Professional Association of Banks and Financial Institutions (ABEF) has announced the unblocking of banking operations with Spain. "I have the honour to inform you that, following the evaluation of the instruction described in this letter and in consultation with the foreign trade agents concerned, the precautionary measures mentioned are no longer necessary," the ABEF said in a statement. 

Moreover, according to EFE, the Bank of Algeria issued another statement in which it explained that "for the domiciliation of foreign trade operations, it is up to the authorised intermediary banks to assess the inherent risks, taking into account in particular the quality of the trading counterparties, and to establish the appropriate measures for the mitigation of these risks".

In early June, Algeria decided to freeze foreign trade with Spain - with the exception of gas - after suspending the Treaty of Friendship, Good Neighbourliness and Cooperation. Algiers took these decisions in retaliation for Madrid's turnaround on the Sahara issue. The Spanish government considered the Moroccan plan for the region as the 'most serious, realistic and credible' proposal to resolve the conflict.

However, Algiers dismissed Spain's change of position as a "betrayal" and promised consequences. Shortly after Madrid's new position on the Sahara was made public, Algiers recalled its ambassador to the Spanish capital for consultations. Also, in early May, a 25 per cent drop in Algerian gas to Spain was reported, according to Enagás data.