Syria suffers from an unfair war against it for more than four years, involving the
forces of old and new Zionist- US colonialism and the Persian Gulf States, Turkey and
other allied states. This war affected all aspects on the life of the Syrian c
ommunity, but I
will focus in the research on the economic impact, particularly on the exchange rate of
monetary policy and fiscal policy too. I will focus on the exchange rate as it reflects the
price of one currency against the other currency or currencies, and I used the dollar
exchange rate because it is the most commonly used in Syrian economic transactions, The
Syrian pound is linked with the us dollar in 1947 under law No.304/on 2 February 1947
and identified rate of the Syrian pound equivalent to (0, 405513) grams of gold, i.e. (45,6)
cents.The importance of exchange rate was revealed with the growing expansion of
international commercial exchanges of goods and services, financial transactions, and in
the digital language how many of Syrian pounds shall be sold or abandoned to obtain one
unit of another currency or USD, for example, so we can notice the importance of
exchange rate stability, and therefore one of the most important responsibilities of the
monetary policy in Central Bank, is to create an exchange rate that helps to boost economic
activity on the macro and micro level and contribute to increase the economic power.
There is common sense that fiscal deficit represent a rival challenge to any fiscal
policy mainly with a collapse of public revenues, the absence of financial markets,
and a slowdown of GDP. Thus there are many risks facing budget stability. We
be
lieve that fiscal situation will deteriorate dramatically as a result of; recent
political crises, international sanctions, incapability to access to external resources of
funding. and Central Bank of Syria role in financing not fiscal deficit, but public
expenditures. Furthermore, the central bank depends mainly on an intervention in
foreign exchange market for preventing the collapse of Syrian Lira, which exhausted
foreign assets.
