Syrian central bank devalues ​​local currency by almost 50% – Economics

The Syrian Central Bank recently announced the almost 50 percent devaluation of the exchange rate of the Syrian pound against the greenback from 3,015 per dollar to 4,522 per dollar. The central bank also warned currency speculators to take measures to end activities that undermine the stability of the exchange rate.

The collapse of the currency is worsening the plight of Syrians

The Syrian Central Bank announced on January 2 that it had adjusted the official exchange rate from 3,015 pounds per dollar to 4,522 pounds. But despite the nearly 50 percent devaluation, the new official exchange rate is reportedly still more than 40 percent above the parallel market rate of 6,500 pounds to the dollar, a Reuters report said.

According to the report, the collapse of the Syrian pound, which traded at 47 to the U.S. dollar before the 2011 protests against Bashar al-Assad's government, has driven up prices for goods. Rising prices have, in turn, worsened the plight of Syrian residents, who are struggling with shortages of staples such as fuel and electricity.

In addition to the ongoing civil war, Syria continues to suffer from the effects of Western sanctions and the financial crisis in neighboring Lebanon. The loss of oil production areas in the northeast of the country has worsened the government's financial situation.

Warning to speculators and currency manipulators

Meanwhile in a Statement Issued on January 2, Syria's central bank said it was ready to take steps that would restore confidence in the local currency.

“The Central Bank of Syria continues to monitor the stability of the exchange rate in the local market, takes all possible means and measures to restore the balance of the Syrian pound, and tracks and deals with any illegal operations that undermine the stability of the exchange rate,” said a statement on the central bank’s website.

The bank also promised to intervene and take measures that would help end speculative activities and manipulation of foreign exchange markets.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer from Zimbabwe. He has written extensively about the economic struggles of some African countries, as well as how digital currencies can provide an escape route for Africans.

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