The Performance of the Exchange Rate Regime in the Maghreb Countries and the Possibility of Adopting Free Float - Econometric Study (1990-2016) -

Abstract

The study tackles the problematic of performance the exchange rate regimes in the Maghreb countries, in order to know the reasons for fear of free floating And non-convertibility of currencies.To measure the performance of the exchange rate regime, we have relied on a econometric study of the panels data and the estimator Pooled Means Groups (PMG). We found that the fixed exchange rate regime is the best regime for the Maghreb countries due to the rise in nominal and real shocks, In addition to a high sensitivity to pass - through, and the weak institutional and financial system, Which poses a real threat to floating currency and the liberalization of foreign exchange markets.