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Algerian President Abdelaziz Bouteflika resigned after weeks of mbadive protests in the streets.
Bouteflika, who has been in power for 20 years, had already abandoned his plans to run for a fifth term because of the rise of opposition to his government.
The powerful Algerian army had asked that the 82-year-old man be declared incapable of performing his task.
The sick ruler suffered a stroke six years ago and has rarely appeared in public since.
He made a rare appearance on public television to give up power a few hours after the army chief, General Ahmed Gaed Salah, called him to leave office immediately.
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Horns were heard on the streets of the capital, Algiers, as hundreds of people celebrated the announcement.
People waved the national flags of Algeria and sang.
Selmaoui Seddik, a man, told Reuters: "God willing, we will have a 100% democratic transition, it is very important.We must eliminate all the previous regime and that is the thing the more difficult."
However, Mustapha Bouchachi, leader of the protest movement, said before the announcement that any decision to leave his Bouteflika mandate would still not change anything and that protests would continue.
The resignation was announced in a statement issued by the official APS news agency.
"The president of the republic, Abdelaziz Bouteflika, officially informed the president of the constitutional council of his decision to end his mandate as president of the republic," said the newspaper.
State television then announced that it would be done immediately.
According to the constitution, the president of the Senate should badume the interim presidency until new elections are held.
How did it happen?
The pressure had been mounting since February, when the first demonstrations were triggered by the announcement by Mr Bouteflika that he would run for a fifth term.
Tens of thousands of people demonstrated across the country on March 1st. Mr. Bouteflika's promise not to fulfill his fifth term if re-elected, as well as a change of prime minister, failed to allay discontent.
The protest leaders also rejected Bouteflika 's offer this week to let him leave the end of his current term – April 28 – as too fast.
It seems that the powerful army has accepted. Its leader, General Ahmed Gaed Salah, said Tuesday earlier: "There is no more room to waste time".
And then?
The demonstrations also called for the overhaul of the entire political system, in which the army plays an important role.
Many protesters are young and say they want a new system of government.
There were accusations that Mr Bouteflika would be used as a front by "the power" – a group of businessmen, politicians and military officials – to retain their power.
The elections originally scheduled for April 18 have been postponed and the ruling National Liberation Front (FLN) has pledged to hold a national reform conference.
The FLN has been leading Algeria since the country gained independence from France in 1962 after seven years of conflict.
Bouteflika, who came to power in 1999, strengthened his grip after a bloody civil war against Islamist insurgents, which claimed the lives of 150,000 people.
The Speaker of the Upper House of Parliament, Abdelkader Bensalah, is expected to become acting president for three months, until the election of the president.
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