The effectiveness of Bank of Algeria in controlling the excess liquidity during the period (2001-2015)

This study aimed to investigate the effectiveness of bank of Algeria incontrolling the excess liquidity, in order to determine whether this bank kept a goodcoordination between the value of foreign exchange reserves and the amount of itsmonetary reserves. In fact, the study used correlation and multiple regression analysis asstatistical tools. These tools are very important to verify whether the monetary reservesparticipated in reducing the excess liquidity. The study concluded that the local and theforeign monetary reserves available at the bank of Algeria were among the main factorsaffecting the excess of liquidity and the inflation. Also, they constitute a financial resource,for the Algerian government, to finance its public expenditure in the near future.