Todo-yamamoto causality approach to investigate the relationship : between exchange rate and its determinants in Algeria

الملخص EN

The goal of this study is to investigate the causal relationship between Algerian Dinar exchange rate/US Dollar and its determinants, which are monetary mass (MM), balance of payments (BoP) and exchange reserve (EXR) through an empirical analysis using Todo-Yamamoto causality upon annual data for the period 1999-2018.

Results show that the existence of a unidirectional causality from balance of payments and exchange reserve to Algerian Dinar exchange rate/US Dollar respectively.

Whereas, there is no causal relationship between monetary mass and Algerian Dinar exchange rate/US Dollar.