This study aims to know the relationship between the official exchange rate of the Algerian dinar against the US dollar and the money supply in the broad sense of the period 1990-2016. Algeria has known important developments in the field of exchange rate policy, especially after the issuance of the Monetary and Credit Law 90/10 in 1990, Which is accompanied by the shift from the fixed exchange system to the managed medium, in order to apply an exchange rate that is compatible with the

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... s of monetary policy by adapting the money supply to the level of economic activity, thus avoiding the occurrence of monetary and economic crises leading to economic stability through balance of payments and price stability. The time series was tested by the Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) test, where the results showed that the time series of both the official exchange rate and the money supply at the level were stable and stability at the first difference. The GRANGER causality was used to illustrate the direction of the impact and to know the nature of this relationship (one-way, reverse or reciprocal) between the exchange rate and money supply in the broad sense in the short term. The results showed that the growth of money supply affects the official exchange rate.