Analytical study of foreign exchange reserves in Algeria during the period (2000-2019)

Abstract

This study aimed to know the reality of reserves in the Algerian economy, it is a basic focal point in determining the reality of targeted economic strategies, according to the financial capabilities available in the midst of the growing severity of the global financial crises that threaten economic entities, and it led to the financial boom in the oil economies, with the accumulation of huge amounts of foreign funds and the emergence of differences between writers and economists about the considerations of the trade-off between return and liquidity with risk, to crystallize the idea of common interests of developed countries in developing underdeveloped economies, this necessitated the need to discuss areas of using foreign exchange reserves in the Algerian economy, as well as searching for the determining factors for the accumulation of these reserves in order to reach the goals that the state seeks to achieve on the ground in the short, medium and long term, in the end, it was concluded that the increase or decrease in the size of foreign exchange reserves, it is fully linked to fluctuations in oil prices, in another meaning, the higher the oil price, the greater the foreign exchange reserve, vice versa.