The impact of inflationary pressures on the exchange rate in Algeria under the managed floating Exchange Rate System during the period 1985-2023: An econometric study using the ARDL model
The impact of inflationary pressures on the exchange rate in Algeria under the managed floating Exchange Rate System during the period 1985-2023: An econometric study using the ARDL model

Summary/Abstract: The study aims to assess the impact of inflationary pressures on the exchange rate in Algeria from 1985 to 2023 using the ARDL methodology. A descriptive-analytical approach was employed to review the literature and examine the evolution of the variables, along with a quantitative approach to determine the sensitivity between them.The results showed a weak but statistically significant positive effect of the dependent variable (exchange rate) on the independent variable (inflation rate) in both the short and long term. However, in the long term, an inverse and statistically significant effect was found for all independent variables (inflation, oil prices, and money supply) on the independent variable (exchange rate). The study also demonstrated a strong response of the exchange rate to changes in the money supply.

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