The effect of exchange rate on the Volume of deposits Of Syrian Islamic banks

Abstract

The study aimed to identify the impact of the Syrian pound exchange rate on the volume of deposits of Syrian Islamic banks. To achieve the objectives of the study, the two descriptive and quantitative analytical methods were used in the study of the phenomenon under study during the period (Q1 2011 - Q4 2018), using the statistical program EViews 10 to analyze the data in a simple regression methodology using the VAR models test. The results showed during the crisis period the decline in the value of the Syrian pound, where the exchange rate exceeded the threshold of 500 SP against the US dollar in 2016, and the increase in the volume of deposits in Syrian Islamic banks from 19.3 billion SP in 2011 to 488.9 billion SP in 2018 In addition, there is an impact of the exchange rate on the volume of deposits of Syrian Islamic banks as a 100% increase in the value of the exchange rate will lead to an increase in the total volume of deposits of Islamic banks by 244.98%.Based on the results, the researcher suggested Activates the use of monetary policy instruments (interest rates, issuance of bonds) to create a stable environment and conditions for the performance of banking business, in addition to the need for Islamic banks to invest their surplus deposits and diversify investment formats.