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This study aims to measure the relationship between foreign exchange reserves and the volume of car imports in Algeria during the period 1990-2020. To achieve the study's objectives, the study data were analyzed using principal component analysis (ACP). The effect of foreign exchange reserves on car import volume was then measured using the autoregressive model (VAR). The study concluded that there is a statistically significant positive relationship in the short term between foreign exchange reserves and the volume of car imports in Algeria. Additionally, the study recommended the necessity of establishing a real industry to preserve foreign exchange reserves.