Though Syria and the middle east are known for their oil
exports, war and IDPs (internally displaced persons) have taken a toll on the economy. From the report last updated in October of
2016, we see how many of the many of the middle eastern countries have been
excepting or purposing taking funds from foreign entities including the U.S. to
help support the growing refugee issue as well as the rebuilding of war torn
areas. This no doubt will have an impact
on the areas exchange rate. I know from
personal experience when I was in Iraq in 2009, the Iraqi Dinar was far less of
value than that of the U.S. dollar. I could
purchase 5250 Iraqi Dinar for only $5 American.
The situation at the time in Kuwait was considerably better as $5
American would only get you just over 3 Kuwaiti Dinar. Needless to say, I passed on it. At the time, Iraq was contemplating scraping
their current currency since it was still heavily associated with the former
dictator Suddam Hussain, and starting over.
Most of the primary concerns for these countries governments right now
is to focus more on the macroeconomics of the country to help combat the issues
that they face. The main driving force
for countries like Jordan and Lebanon are to keep schools and infrastructure
operational and to help with the rising demand for everyday essentials due to
the huge numbers that are flooding in holding refugee status.
Reference:
When I was in the area I was in Dubai and it was so long ago I could not tell you even remotely what the exchange rate was. I was also in the UAE and could not tell you what that was either. That was 1991 though so I do have a good reason for not remembering. During the time I was there, the issue of refugees was not a problem. Or not a problem I was aware of.
ReplyDeleteA large influx of refugee's is going to put a strain on any economy. Especially an economy that is not as stable as others in the area already. They do not have the resources that other countries might. The other issue is that their existing economies are being affected by the fallout of oil prices. OPEC is pushing to keep the prices low to attempt to starve out the shale oil producing systems fro becoming profitable and viable. This is going to hurt the resources of these countries as the oil money is not there in the amounts it was.