The purpose of this research is to study the determinants of the real exchange rate in Syria during the period 1990 to 2011. We employed Vector Auto Regression (VAR) model to study the long-term relationship between the real exchange rate and the factors affecting it. Also we applied the Granger causality test to investigate the direction of the relationship between these variables. In addition, the Impulse Response Functions (IRF) and the Variance Decomposition to determine thecontribution of thesedeterminantsin the interpretation ofthe variance oftherealexchangerateof the Syrian pound. Eight possible determinants have been included in the empirical model: Foreign direct investment,realGDPgrowthrate,money supply, government consumption, trade openness,real interest rate, terms of trade, political stability indictor. The variables that have been found to have a long run relationship with the real exchange rate are: theforeign direct investment, real GDP growth rate and trade openness.EspeciallyForeign direct investment and Real GDP growth rate which have the greatest effect on the real exchange rate, while the trade openness had the least effect on the real exchange rate in Syria.Leavingthe other determinants with insignificant effect on real exchange rate in Syria.