The Impact of the International Foreign Monetary Reserve on the Exchange Rate

Algeria Case Study 1990-2019

Abstract

This study seeks to evaluate the relationship between the amount of the international monetary reserves of the Central Bank of Algeria and their effect on the exchange rate of the Algerian dinar, by studying the time series of the two statistical variables during the period 1990-2019, the first statistic is the international monetary reserve with the Algerian Central Bank and represents the independent variable, but The second statistic is the Algerian dinar exchange rate with the US dollar and represents the dependent variable.

After applying the statistical tests to the time series under study, using the Eveiws9 statistical program, it was found that they are stable and explain the relationship between the international monetary reserve and the Algerian dinar exchange rate, and that this relationship is strong between them