Bank of Algeria lets banks deal in gold

The Bank of Algeria has issued regulation No. 26-04, which lets banks trade, hold and lend against gold, published on 4 November.

Individuals and companies can therefore deal with banks in these ways, as the regulation allows.

TSA reported that the rules set the conditions for gold operations by the Bank of Algeria itself, commercial banks and financial institutions.

Banks and financial institutions can buy and sell gold, for cash or for later delivery. They can also hold gold for safekeeping, open gold accounts, and take gold as security.

Financing and loans can be guaranteed by gold or linked to it.

Until now, gold has mostly changed hands between individuals and jewellers, in many cases informally. The aim is to turn gold held as savings into a regulated, transparent and traceable financial instrument.

Gold from the local market must be valued under rules set by official national bodies. Procedures must also check the purity of gold, establish where it comes from and ensure it can be traced.