Marche De Change Informel Et Mesalignement : Le Cas Du Dinar Algerien

One of the characteristics of developing countries is the co-existence of the parallel market for foreign exchange along with the official market. In this paper we shall examine the main factors behind the development of this market that lead to a situation of misalignment. Using Cointegration techniques, we show that the Algerian parallel exchange rate is more efficient that the official rate. These results have strong policy implications. Evidence from our research shows that authorities should take into account information provided by the parallel exchange rates in deciding the level of the appropriate official exchange rate.