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The Syrian Central Bank raises the official dollar exchange rate by nearly doubling


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The Syrian Central Bank raises the official dollar exchange rate by nearly doubling

Economie12:12 - 15/04/2021

 
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Follow-up - Mawazine News
The Central Bank of Syria raised the dollar exchange rate by nearly double in the official bulletin for the first time in about 10 months.
According to the banking and exchange bulletin issued by the bank daily, the exchange rate of one dollar was set at 2512 pounds, up from 1256 pounds, which is the price that it had approved since July 2020.
The price of buying dollars for the delivery of personal transfers received from abroad was set at 2,500 pounds.
In recent days, the Syrian Central Bank had modified a number of exchange rates, the most prominent of which was allowing exchange companies to sell dollars to merchants and industrialists for 3375 pounds, and the last of which was yesterday by raising the exchange value of the hundred dollars that Syrians coming to their country must spend at the border to 2500 pounds per dollar. A43

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Its a race to the bottom. US cant print fast enough devaluing our currency and causing inflation meanwhile even with that mideast countries move to further devalue their currency against it. 😑

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4 minutes ago, mally2 said:

Its a race to the bottom. US cant print fast enough devaluing our currency and causing inflation meanwhile even with that mideast countries move to further devalue their currency against it. 😑

Yeah it’s really sad isn’t it? 

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17 minutes ago, NEPatriotsFan1 said:

Yeah it’s really sad isn’t it? 

It is sad and many well meaning people dont realize it just makes the rich richer and the poor poorer growing the divide as the price of hard assets and various investment vehicles that the rich can afford go up.

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So even without the RV if they keep going like this Americans will be able to move to these countries and live like kings. Until you get your head lopped off.

 

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“the exchange rate of one dollar was set at 2512 pounds, up from 1256pounds, which is the price that it had approved since July 2020.”

 

Wow 😳 100% devaluation...... Poor Syrian people.!

 

The Syrian pound set a record in March trading on the black market at 4,600 pounds to one U.S. dollar before improving to 3,100. At the start of the conflict in mid-March 2011, the U.S. dollar was worth 47 Syrian pounds.

On Tuesday, regime head Bashar Assad sacked central bank governor Hazem Qarfoul from the post he held since late 2018. No replacement has been named so far.

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The Syrian pound is recovering some of its health and the float is looming on the horizon

l 2 hours ago

Lamar Arkandy - Damascus - Sky News Arabia

 

 
A decade of war affected the Syrian crisis
A decade of war affected the Syrian crisis

The Syrian pound plunged during the tenure of the governor of the Central Bank of Syria, Hazem Karfoul, remarkably, and lost its value twice against foreign currencies, until the dollar became 3175 pounds during the past year.

The Syrian currency suffered these heavy losses, while it was in the range of 470 pounds against the dollar, in September 2018, but experts believe that overlapping factors led to this decline.

Economists and finance experts point to the role of inflation that accompanied the Central Bank of Syria launching a new banknote in 2019 for a denomination of 5,000 pounds, and then launching it for circulation on January 24, 2021, while the Syrian economy has descended into a very bad situation.

In 2017, the Central Bank introduced a banknote worth 2,000 Syrian Pounds , and since then the Syrian currency has been subjected to a continuous deterioration, especially after late 2019.

The currency was also affected by the tightening of sanctions and the economic collapse in various sectors, so the value of the lira fell to its lowest level, and approached the barrier of 5,000 against the dollar, four weeks ago.

A gradual improvement in the Lira

The Syrian currency began to gradually improve to record 3,200 pounds against the dollar on April 14th, and this came one day after Syrian President Bashar al-Assad dismissed Hazem Karfoul and froze his duties as governor of the Central Bank of Syria according to Legislative Decree No. 124 of 2021, on the 13th of this month, According to the state-run SANA agency, a successor to Garfoul was not appointed through the decree.

The economist and money market expert, Samir Raouf, ruled out the recovery of the Syrian economy by freezing the officials of the Syrian monetary centers, given that the issue is linked to monetary policies.

 

Raouf clarified that improvement necessitates the development of sound economic plans to confront the deteriorating conditions of the financial and economic files and the state’s inability to meet the obligations arising from the needs of citizens and its external obligations with other countries.

The pound is in acute crisis

Samir Raouf talked to "Sky News Arabia" about the acute crisis facing the Syrian pound due to the total collapse of the Syrian economy during the ten-year war and the destruction of its infrastructure, construction and service institutions, and its crisis intensified in light of the outbreak of the Corona pandemic and the shortage of living supplies and aid for citizens who are on the threshold of famine. .

The Egyptian expert believes that the shortage of the Syrian Central Bank’s foreign exchange reserves has led to significant inflation in the prices of the Syrian pound, which exceeded the barrier of 3300 pounds against the dollar on average.

"The value of the Syrian pound varies from one region to another due to the pressures it faces, especially the effects of the black market on the currency level," he said.

And he warns that with the lack of a clear vision of the future of the Syrian economy, the pressure on the Syrian citizen increases and the difficulty in providing for his basic needs for his livelihood of food, electricity, health, education, transportation and others.

The solution is to float the currency

The Syrian pound is rising in banks, following the Syrian Central Bank’s support for the currency, and the financial markets economist Samir Raouf believes that the central floating of the Syrian pound against the dollar will raise the value of the pound in an unprecedented way.

"The only solution to the crisis is the floating of the currency, that is, leaving the currency to supply and demand in order to deviate the value of the real exchange rate against the dollar, especially as countries in the region have done this, such as Egypt, Sudan, Turkey, Iraq, Morocco and Lebanon," he said.

Samir Raouf noted that floating the currency is a cruel measure against the Syrian citizen, but it is the only remedy for the recovery of the total economy and its knowledge of the strength of the currency and the surviving economic channels and sectors that help the economy grow, restore the affected institutions and discuss solutions to treat them.

 

Regarding allowing merchants and industrialists to deal in foreign currency, the financial expert explained that the Ministry of Internal Trade's decision comes within the framework of providing foreign currencies that will enable international trade deals and agreements to be concluded to get out of the economic crisis and improve the value of the Syrian pound.

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3 hours ago, yota691 said:

 "The only solution to the crisis is the floating of the currency, that is, leaving the currency to supply and demand in order to deviate the value of the real exchange rate against the dollar, especially as countries in the region have done this, such as Egypt, Sudan, Turkey, Iraq, Morocco and Lebanon," he said.

since when has iraq float the iqd? from 1190 to 1460 is called floating the currency? is it right?

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On 4/15/2021 at 10:18 PM, mally2 said:

Its a race to the bottom. US cant print fast enough devaluing our currency and causing inflation meanwhile even with that mideast countries move to further devalue their currency against it. 😑

Yep waiting for the reset 

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Adjustment of the purchase price of remittances received from outside Syria Adjustment of the purchase price of remittances received from outside Syria

Coinciding with the worst economic and financial crisis in Syria, circulars and decisions that aim to control the chaos in the dollar exchange rate abound, and the last of these decisions is the bulletin of "Banking and Exchange".

The Central Bank of Syria has amended the “Banking and Exchange” bulletin to make the purchase price of remittances received from abroad, personal and “Western Union,” and received for the benefit of the United Nations and its affiliated bodies and international humanitarian organizations and institutions received equivalent to 2,500 Syrian pounds against the US dollar, after it was 1250.

This comes within the framework of the bank’s endeavor to "unify exchange rates and encourage foreign remittances and attract them through the regular channels in order to achieve an additional source of foreign exchange directed to achieve the public interest," according to the bank's statement .

 

Allowances price bulletin Date 04-14-2021 Follow us on Telegram: https://t.me/s/centralbankofsyria, the official channel of the Central Bank of Syria

Posted by Central Bank of Syria - the Central Bank to Of : Syria On for Wednesday, April 14, 2021

Local sources indicated to the Al-Hurra website that despite the adoption of an official exchange rate (2500 SYP / dollar), some transfer companies have delivered incoming remittances from abroad equivalent to 3050 Syrian Pounds per dollar, noting that the dollar exchange rate on the black market, It arrived today, Saturday, to 3175 Syrian pounds.

In light of the low difference between the fixed exchange rate for remittances and the one used on the black market, the question arises about the purpose of this step and its validity.

 'Attraction'

Here, economic analyst, Younes al-Karim, answered in an interview with Al-Hurra, saying: "The Central Bank tries to limit the price of the dollar, especially since remittances are the main source of foreign exchange," stressing that "some offices adopted a higher price than the officially specified." 

Al-Karim considered that this step is "an act of attraction to encourage Syrians abroad to send their money through exchange offices and remittances, instead of sending it through the black market, especially since the difference is no longer large between the two parties."

"Foreign currency"

Al-Karim explained that "the industry is completely stopped, and so is the real estate market due to the lack of enforcement of the sales law that will determine a tax on the price of a meter of the property, which made foreign transfers the only outlet for obtaining foreign currency and importing again, and this is what the government is seeking after the crisis of scarcity of main commodities in the markets ".

The economic analyst pointed out that "the Syrian government is unable to import basic commodities because of the loss of all budget funds after the major and continuous collapse in the exchange rate."

 

 

He stressed that the Central Bank’s move is not to finance the Syrian regime itself, saying: “The priority today is to secure basic goods and services for people.”

The country is preparing to hold presidential elections, the second since the outbreak of the Syrian crisis in 2011, in the coming months, without setting a deadline yet. 

In this context, the economic journalist, Murshid Al-Nayef, said in an interview with Al-Hurra website, "The goal of the Bashar al-Assad regime in the devaluation of the Syrian pound is to provide supplies with a minimum of foreign exchange, because the Syrian markets are suffering from a great drought in the dollar."

He no longer had any choice

He added, "The regime wants to carry all the economic burdens and responsibilities of the exchange rate of the lira to divert attention from other, more important issues, as there is a great shortage of oil derivatives, and bread as well," pointing out that "there is a clear attempt to reduce and limit the economic and living crisis to the exchange rate."

Al-Nayef considered that "what the Central Bank announced is not an" achievement "but rather an admission of the collapse of the lira and the official retreat of its exchange rate against the dollar. The traditional foreign exchange that softens the movement of the dollar, especially since Lebanon also suffers from a similar economic and financial crisis.

Correctness of the procedure

Regarding the scientific validity of the step, al-Karim expressed his hope that the unification of the exchange rate would have positive effects on the Syrian economy.

But Al-Nayef considered that "this procedure is temporary and will not lead to any recovery of the exchange rate of the Syrian pound, even if it brings some benefits to the government and to the Syrians who send money to their families from abroad," stressing that "the economic reality needs supportive policies for growth."

 The Central Bank of Syria had raised the official exchange rate of the pound against the dollar from 700 to 1,250 pounds in June 2020.

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 2021-04-19 09:33
 

Shafaq News / Currency exchange offices witnessed remarkable movement and turnout in the markets of the city of Derik, in the far north and east of Syria.

And the Federation of Chambers of Commerce in the Autonomous Administration, in light of the total ban imposed to confront the Corona pandemic yesterday, Sunday, allowed exchange offices to work for one day Monday 19-4-2021 from 8:00 in the morning until 3:00 in the afternoon.

"There is a remarkable turnout of citizens for the shop after a total ban that lasted for six days, the decline of the American dollar and a slight improvement in the value of the Syrian pound," said cashier Hawker Tammy from Dirk, as one US dollar recorded 2888 Syrian pounds.

Tammy stressed that citizens adhere to the procedures banning the wearing of masks, but they do not apply the laws of social distancing imposed by the Health Authority in the Autonomous Administration.

And the Autonomous Administration of northern and eastern Syria imposed a total ban on all its regions, from April 13 for a period of ten days, and excluded from the total ban food and vegetable stores.

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