The Syrian Central Bank recently announced a nearly 50% devaluation of the Syrian pound exchange rate against the dollar from 3,015 to 4,522 per dollar. The central bank also warned currency speculators that it would take steps to end activities that undermine exchange rate stability.
Currency Plunge Worsens Syrians’ Plight
On January 2, the Syrian central bank announced that it had adjusted the official exchange rate from 3,015 pounds to 4,522 pounds per dollar. However, despite the nearly 50% devaluation, the new official exchange rate is more than 40% higher than the parallel market rate of 6,500 pounds to the dollar, Reuters reported.
The reportsaid the collapse of the Syrian pound, which traded at 47 to the dollar before the 2011 protests against the Assad regime, was due to higher commodity prices. The rise in prices has exacerbated the plight of the Syrian population, who must contend with shortages of basics such as fuel and electricity.
In addition to the civil war, Syria continues to be affected by Western sanctions and the financial collapse of neighboring Lebanon. The government’s financial situation has been exacerbated by the loss of oil-producing areas located in the northeast.
warning to speculators and currency manipulators
“The Central Bank of Syria will continue to monitor the stability of the exchange rate in the local market, take all means and measures to restore the balance of the Syrian pound, and track and address all illegal operations that undermine the stability of the exchange rate,” the statement on the central bank’s website said. It states.
The bank also pledged to intervene by taking measures to help end speculative activity and manipulation in the foreign exchange market.
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