Study of the Standard Relationship between the Money Supply and the Exchange Rate in Algeria during the Period (1990/2020)

This study aims to examine the relationship between money supply and exchange rate in Algeria 1990 2020. We analyze economic conditions that characterized this period, including shift from a directed economy market economy, as well Algeria's participation International Monetary Fund World Bank programs. To understand impact of on short long term, we utilize Engel-Granger co-integration method. employ (Auto Regressive Distributed Lag/ARDL) model measure two variables. Our findings indicate there is statistically significant positive effect at 1% significance level (P=0.001 < 0.01). The limits tests for through F-statistic also supply, aligning with theory. During post-reform period (2000-2014), observe net foreign assets played marginal role covering monetary mass compared state loans, which continuously increased, particularly since 2009. It important note our relies comprehensive reliable data official sources collect Algeria. Additionally, assumptions may results not be applicable all cases. Nonetheless, contributes existing literature sheds light specific case