Abstract:

Herakleios (610-640) had to manage the administration for some time without financial resources whom inherited a depleted treasure from the Phocas administration (602-610). However, with the transferring of the wealth of the capital and Anatolian Churches to the empire treasury brought a financial relief. The Emperor gained a victory after the long and weary fights against Iran, also captured a large part of the Iranian treasure and had the opportunity to repay the loan money he collected from the church earlier. In this period it is seen that the circulation rate of golden coins (as of 630) is about 20% less than two century ago. This data is a clear indication that trade has narrowed and the economy has shrunk in the 7th century. While the Byzantine Empire succeeded in overcoming the Iranian problem, couldn’t prevent loosing territories so important for itself in the face of the rising Arab raids of the same century which caused a great economical and commercial impact. Nevertheless, The Byzantine Empire managed to survive such a difficult process and to preserve its existence by courtesy of powerful and intelligent emperors like Herakleios. One of the most important factors that enabled the Empire to survive was succeeding to keep Anatolia in its hands especially after the loss of Egypt and Syria.Again, the thema system developed to strengthen the defense of the empire and to provide the army power without bringing a burden to the treasure made it possible to resist the problems that Byzantine faced in this century.

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