The financial markets play an important role in the economies of the developing and
undeveloped countries likewise. As they are ones of the financial political tools are
used in filling the local savings and an attractive instrument for the foreign
investments in addition to its active role in financing the growing economic plans.
The study aimed to test the effect of changing exchange rate of the Syrian pound
against the dollar on the shares of joint stock companies listed on the Damascus
Securities Exchange, the study covered the monthly data for the period extending
from July 2011 until November 2015.
This research aims to investigate the optimal exchange rate regime
in Syria during the period 1990-2010 in order to know whether the move that took place in 2007 toward more flexible exchange rate regime, through pegging the Syrian pound to the SDR
basket within margin 9%, is an optimal choice.
For that purpose, we study and analyze a number of determinants relating to the economy's structural characteristics and considered in the economic literature to have an important effect on the economic performance, and hence on the choice of the optimal
exchange rate regime.
