Electronic payment tools and their role in enhancing the efficiency of monetary policy in Kuwaitand the possibility of benefiting in Syria

Abstract

The current research aims to know the impact of electronic payment tools in enhancing the efficiency of monetary policy in the Kuwaiti economy, while studying the possibility of benefiting from the Kuwaiti experience in Syria in terms of choosing electronic payment tools appropriate for the Syrian economy. The dependent variable (cash in circulation) was determined, while the independent variables were (values of credit card transactions, values of non-credit card transactions, interest rate, real GDP growth rate). The VECM model was used, which shows the short- and long-term relationship during the period 2012-2021 On a quarterly basis, the results indicated that in the short-term, electronic payment operations contribute to encouraging deposits through the advantages they provide, which reduces the amount of cash in circulation, with the need to point out that the impact of non-credit cards is greater than the impact of credit cards. Due to the public’s reliance on non-credit cards, the negative impact of cards continues in the long term. In order to enhance efficiency in the Syrian economy, debit payment instruments must be used in the Syrian economy because they change the composition of the money supply and do not lead to high inflation rates.