dollar liquidity providing operations in connection with the federal reserve term auction facility, every second week for as long as needed, and for an increased amount of usd 15 billion each, which was further increased to usd 25 billion each, on 2 may 2008. these liquidityproviding operations did not have a direct effect on euro liquidity conditions, but aimed at improving global funding conditions. the g - 10 central banks have since continued to work very closely together and to consult regularly on liquidity pressures in funding markets. it is important to stress that the action in connection with the taf marked the first multilateral central bank co - operation in the money market field, a market which is central to the implementation of a central bank ’ s monetary policy. key lessons and policy initiatives substantial weaknesses in the functioning of financial institutions and markets were revealed by the episodes of turbulence, high level of volatility and overshooting on a number of markets. the convergence of such diverse factors embodies the first “ real magnitude ” stresstest of today ’ s global financial system. in retrospect, the shock to the global financial system following the burst of the internet bubble was, all things considered, relatively modest. various streams of work co - ordinated at the eu level aim at strengthening the supervisory and financial stability arrangements – including the introduction of a european mandate to national supervisors, the clarification and strengthening of the functioning of the committees of supervisors at the level of the 27 nations, the wider use of colleges of supervisors to reinforce the supervision of cross - border banking groups and the approval of a memorandum of understanding on cross - border cooperation in financial crisis situations between all relevant authorities in the eu ( namely supervisory authorities, central banks and finance ministries ). similar reflections have been launched in the us, for example let me mention the recent proposals issued by u. s. treasury secretary paulson to strengthen the us financial regulatory structure, and are being considered in other nations. equally or more importantly has been the agreement at an international level on the appropriate methodology to identify the common lessons on a co - ordinated basis on both sides of the atlantic as well as on both sides of the pacific. the present episode of turbulence is a global phenomenon, and thus only a global response can be effective. after the asian crisis, at the initiative of g7 finance ministers and central bank governors the financial stability forum ( fsf ) was created as the informal grouping where a synthetic diagnosis of the state of global finance

transfers related to foreign direct investments ( fdis ). the measures do not give rise to any exchange restriction. the objective of the measures is to ensure the traceability of payments related to good faith transactions, hence contributing to combating the parallel sector and ensuring that banks operating in algeria effectively fulfil their responsibility in terms of first - level control of the transactions with the rest of the world, in line with the terms of their license. algeria remains committed to the stability of its exchange rate regime, commensurate with its commitments in the context of article viii of the imf ’ s articles and the association agreement with the european union ( eu ), notably regarding current payments and capital movements. foreign direct investment in algeria is a relatively recent development and has notably followed the achievement of balance of payments viability. for the past six years ( 2003 – 2008 ), total fdis amounted us $ billion 8. 7, of which 47. 3 % from eu countries and 25. 2 % from asian and middle - eastern and north african countries. the share of fdis in the hydrocarbon sector in total fdis, which reached 55 % in 2005, has gradually declined to 42 % on average during the recent years. non - hydrocarbon sectors which attracted fdis include the banking sector, chemical industry, food industry, electricity sector, water desalination, and construction material. the exchange rate policy is conducted by the bank of algeria in the context of a managed float regime of the dinar vis - a - vis the currencies of algeria ’ s main trade partners. since 2004, with a real effective exchange rate ( reer ) around the equilibrium level as determined by the economy ’ s fundamentals, exchange rate policy is well in line with external stability, the latter being anchored to a notably strong net external financial position. in operational terms, the bank of algeria intervenes in the interbank market to ensure that movements in the nominal exchange rate do not affect the long term equilibrium of the real effective exchange rate of the dinar. in this context, despite high volatility of consumer prices and exchange rates in trading partners, including the sharp decline in oil prices in the second half of 2008 ( one of the main fundamentals in algeria ’ s economy ), the reer has remained near its equilibrium level and the external financial position remains comfortable.