02067cas a2200253 a 4500 AALejournalIMF005297 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451870541 1018-5941 BD-DhAAL BD-DhAAL Dridi, Jemma. The Impact of Oil-Related Income on the Equilibrium Real Exchange Rate in Syria / Jemma Dridi, Maher Hasan. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the impact of oil-related income, among other fundamentals, on the equilibrium real effective exchange rate (ERER) in Syria. After reviewing the evolution of the Syrian multiple exchange rate regime since 1960 and assessing alternative measures for the exchange rate, the paper analyzes the impact of oil-related income on the ERER in the context of a behavioral equilibrium exchange rate model. The analysis concludes that ERER appreciates with higher oil-related income, productivity and net foreign assets, but, at odds with the conventional wisdom, depreciates with higher government expenditures given that an increase in expenditures usually translates into higher imports and weaker current account position. In light of the projected real shocks associated with the depletion of oil and the change in other fundamentals in the context of the ongoing transition to a market economy, a more flexible regime would serve Syria better in the future. Mode of access: Internet Hasan, Maher. IMF Working Papers; Working Paper ; No. 2008/196 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/196/001.2008.issue-196-en.xml IMF e-Library