There have been six weeks of mostly peaceful protests in an attempt to get rid of Abdelaziz Bouteflika.
Algerians had been calling for the removal of the elite, seen as out of touch with ordinary people.
Mr Bouteflika appeared on state TV looking frail and dressed in a traditional winter robe, to hand in his resignation letter to the head of the Constitutional Council. Algeria is a key OPEC oil producer and gas supplier for Europe, and has been a partner in the fight against militants. More than a quarter of Algerians are under 30 years old, and about 70% of the population is unemployed.Some say the demonstrations may continue despite the leader's resignation. As Mr Bouteflika's power began to slip, some protesters had already turned their focus to rejecting a caretaker government which was appointed on Sunday.
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