syrian currency

I remember one even happened in Japan about 10 years ago, the government decided to change the interest rates which is somehow will increase the value of their Yen.

Surpisingly, all the factory owners, business men and big traders refused that, and they asked the government not to go ahead with it, because it wi break to Japanese economy, how come that increasing the Japanese Yen value compares to other currencies will break the Japanese economy??????

Here is the answer:

Japan is a country which their economy depends in big part on exporting (cars, machines, technology, ...etc).

And when they export these things, they sell them in Japanese Yen, if the Yen is more expensive, and the prices are the same, all the importing parties will think twice about the new cost of the materials they are importing, and offcourse they will reduce the amount imported to keep their expenses whithin the budget.

As a result to that, Japan is not exporting as much as before......>>>>economy is down>>>stock market is red>>> evereyone is screwed.....

I hope I could pass this info in a right and clear way...

CHEERS.

thanks for all the info guys,appreciate it.anyone from syria or previously work from syria can shed light on this matter.personal experience can help so much.please...Lucky Charm

another example: 1 Japanese Yen = 0.45 Syrian Pound, but the Japanese economy is the second stronger in the world.

May God keep your economies strong all the time...

Ducks is right......he's a Swiss, who else knows more about money, lol...

the price of a currency against another is not an indicator to it's strength or weakness.

there is a better indicator for that, but it's not completely correct which is this:

you pick the highest number of a specific currency used and you compare it with the highest with the other, whichever worth more...

i.e. the highest Syrian currency number is 1000SYP, abd the US is 100USD, which is around 5000SYP, which means that the US ecconomy is stronger that the Syrians.

But as I said it's just an estimate quick indicator, and it's not always right, due to many many other issues in economies. 

from wikipedia:

Given the poor development of its own capital markets and Syria's lack of access to international money and capital markets, monetary policy remains captive to the need to cover the fiscal deficit. Although in 2003 Syria lowered interest rates for the first time in 22 years and again in 2004, rates remain fixed by law. In a positive move in 2003, Syria canceled an old and troublesome law governing foreign currency exchange; however, new regulations have yet to be implemented. Some basic commodities continue to be heavily subsidized, and social services are provided for nominal charges.

Syria has made progress in easing its heavy foreign debt burden through bilateral rescheduling deals with virtually all of its key creditors in Europe. In May 2005, Russia and Syria signed a deal that wrote off nearly three-quarters of Syria's debt to Russia, approximately €10.5 billion ($13 billion). The agreement left Syria with less than €3 billion (just over $3.6 billion) owed to Moscow. Half of it would be repaid over the next 10 years, while the rest would be paid into Russian accounts in Syrian banks and could be used for Russian investment projects in Syria and for buying Syrian products. This agreement was part of a weapons deal between Russia and Syria

Doha, I'm coming! Ducks in Doha from 12th - 18th of May :)

Hey Charms,

Dont go by the exchange rate!! Go by their GDP, trade balance etc. Jap Yen trades at around 104-105 to a USD. It does not mean Jap economy is in doldrums?!!!!

thanks ducks.no im not assuming thats why my sentence ends with a question mark because i really dont have any idea and i really want to know.please share more info about this.only ducks have the info?Lucky Charm

The name of the currency and the exchange rate you mentioned is correct, dont know about the economy.

Yes, you are right....1 US = around 50 Syrian Pound (or Lira).

And assuming that their economy is not ok just because it's not 1:1 to the US Dollar is wrong...maybe the have all prices (and income) 50x higher...you can't related the exchange rate to the economy in the specific country. \

Doha, I'm coming! Ducks in Doha from 12th - 18th of May :)