Examen des alternatives possibles à la gestion des réserves de change par la Banque d’Algérie

Examination of possible alternatives to the management of foreign exchange reserves by the Bank of Algeria

Abstract

Algeria's management of foreign exchange reserves is prudent, investing them in sovereign bonds and US dollars. In our study, we examine possible alternatives to this management approach. We begin with a descriptive study of the characteristics of foreign exchange reserve management in Algeria. Then, through Benchmarking with a sample of sovereign wealth funds, known as commodity funds and described as transparent, we study the option of creating a sovereign wealth fund. Finally, by Benchmarking with a sample of countries comparable to Algeria, we have highlighted the benefits they have derived. We concluded from the first Benchmarking that, by creating a sovereign wealth fund, Algeria would have earned more than the investment returns on its reserves, and from the second Benchmarking that Norway, with its successful diversification strategy, is the paragon of the sample studied