The intermediary exchange rate regimes what option is the best for the Algerian exchange regime

Abstract

The aim of our paper is to elicitate the best option (the intermediary exchange rate regime) to accompany our transition from the fixed  exchange regime to the floating one, to ensure the stability  of the monetary market, and the level of the prices of goods and services  that will be endangered in the case of a direct transition. The best option for the Algerian monetary market is the managed floating  regime, in which the manipulation of the national currency will guarantee a smooth accompaniment of the balance of payment situation,  managing the foreign currency reserve, while securing the power purchase. But in fact the Algerian regime is still the centralized system,  with the is no manipulation of the national currency, only by pegging it to the dollar, by conducting a devaluation to mitigate the   effect  of 2014 crisis on the balance of payment, or revaluation to protect the power purchase.