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The Black Market Exchange Rate and Demand for Money in Algeria

Author

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  • Bouteldja, Abdelnacer
  • Benamar, Abdelhak
  • Maliki, Samir

Abstract

The aim of this paper is to examine empirically the effects of black market exchange rate on the demand for money in Algeria where due to government restrictions and controls on foreign exchange, two exchange rates (official and black) coexist and operate simultaneously. The discrepancy between the two rates has intensified since the adoption of the (S.A.P) in 1994.Using quarterly data for the 1974-2005 and an ARDL approach combined with CUSUM and CUSUMSQ,our results provide further evidence in favor to the inclusion of black market exchange rate rather than official rate issue.

Suggested Citation

  • Bouteldja, Abdelnacer & Benamar, Abdelhak & Maliki, Samir, 2013. "The Black Market Exchange Rate and Demand for Money in Algeria," MPRA Paper 75280, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:75280
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    References listed on IDEAS

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    Cited by:

    1. Muhammad Uzair Ali & Zhimin Gong & Muhammad Ubaid Ali & Fahad Asmi & Rizwanullah Muhammad, 2022. "CO2 emission, economic development, fossil fuel consumption and population density in India, Pakistan and Bangladesh: A panel investigation," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 18-31, January.
    2. BENDOB, Ali & SI MOHEMMED, Kamel, 2014. "La relation entre le taux de change parallèle et la demande de la monnaie Cas de l’Algérie durant 1980-2010: Une approche économétrique [The relationship between the parallel exchange rate and dema," MPRA Paper 76085, University Library of Munich, Germany, revised 2014.
    3. Si Mohammed, Kamel & Chérif touil, Noreddine & Maliki, Samir, 2015. "An Empirical Test of Purchasing Power Parity of the Algerian Exchange Rate: Evidence from Panel Dynamic," MPRA Paper 75285, University Library of Munich, Germany.
    4. Tiago Neves Sequeira & Marcelo Santos, 2015. "Labour Market Returns and Wage Inequality: New Evidence for Europe," Research in Applied Economics, Macrothink Institute, vol. 7(3), pages 31-45, September.
    5. BigBen Chukwuma Ogbonna, 2015. "Exchange Rate and Demand for Money in Nigeria," Research in Applied Economics, Macrothink Institute, vol. 7(2), pages 21-37, June.

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    More about this item

    Keywords

    Money demand; Black market exchange rate; ARDL Bounds testing approach;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • G0 - Financial Economics - - General

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