Studying The Possibility Of Floating The Syrian Pound Exchange Rate

Abstract

The aim of the research is to study the proposal of the optimal choice of the exchange system in Syria, that is, is there a possibility to float the exchange rate of the Syrian pound to confront external and internal shocks, and maintain the value of the Syrian pound? Especially after the historical collapse of the Lira, which reached the limit of 15 thousand S.P/ USD by the beginning of the year 2024. This is done by taking advantage of the study of the Egyptian experience, which implemented the flexible exchange system (floating the pound against foreign currencies), within a time series stretching from 2011 to the end of 2023. The analytical approach of the study is based on the methodology of studying the event EVENT STUDY, considering that the decision to float is an event that affects the exchange rate. The study found that Egypt benefited from the flotation experience by stabilizing the exchange rate of the pound and the inflation rate. At the end of the research, the researcher recommends that those in charge of monetary policy in Syria reconsider the exchange system applied in Syria by gradually moving to a flexible form. And other recommendations that the researcher hopes to be put into practice by the Central Bank of Syria and in coordination and integration with the financial policy in Syria as well to contribute to preserving the value of the Syrian pound against other foreign currencies.