(Eqtsad)- In truth it is not a cross road, but only one road and obligatory direction… it is depreciation. But the question which occupies everyone’s mind today is, “what is the speed of the depreciation? And are we witnessing a complete collapse of the Syrian Pound during a short period of time, or is the regime’s Central Bank still able to break and thus reduce the speed of the depreciation?”
But the facts indicate that the Central Bank’s breaks have become decomposed and are unable to stop the deterioration that the Syrian Pound is exposed to.
There is a covert move the regime seeks to achieve by compensating the Central Bank’s interventions, and it is the return to the idea of production and export as a way to gain access to hard currency to compensate the bleeding in the central bank’s stocks. This way the Central Bank will return to playing the same role of pumping into the exchange markets, and controlling the exchange rate once more. The regime aims at changing the Central Bank’s breaks and not adopting a new economic or monetary policy.
The regime’s faith in the Central Bank’s ability in halting the collapse of the Syrian Pound, based on the success the Central Bank has achieved in the past five years, appears real as the regime is not seeking out other alternatives. But to what degree is this correct, and can the Central Bank control the initiative once more in the event new stocks were made available for it?
Of course the regime does not believe in economy and productivity to defend the Pound, because it was the first to start destroying the economic infrastructure of the country when it raised the slogan of burning everything for al-Assad. And it is still insistent on continuing to burn, and it is turning to the Central Bank to perform this role. From its side, the Central Bank is waiting for the new stocks that will enter its vaults to recommence its role. Until that new comes maybe the dollar will have surpassed 1000 Syrian Pounds. It is the logic of production which the regime has started to think with, as the regime will need at least a full year before it reaps the results.
The question which proposes itself, what if this productivity is not achieved? What will the situation of the Syrian Pound be after a year? We do not want to speculate about this matter, but economic logic dictates that the collapse will be resounding this time. We would not be surprised that the dollar reach 5 thousand Syrian Pounds and suddenly.
The Syrian tragedy has become open to all possibility, and maybe the Syrian Pound is the lest damaging in this tragedy. (Writing by Fuad Abdul Aziz; Translation by Rana Abdul)
But the facts indicate that the Central Bank’s breaks have become decomposed and are unable to stop the deterioration that the Syrian Pound is exposed to.
There is a covert move the regime seeks to achieve by compensating the Central Bank’s interventions, and it is the return to the idea of production and export as a way to gain access to hard currency to compensate the bleeding in the central bank’s stocks. This way the Central Bank will return to playing the same role of pumping into the exchange markets, and controlling the exchange rate once more. The regime aims at changing the Central Bank’s breaks and not adopting a new economic or monetary policy.
The regime’s faith in the Central Bank’s ability in halting the collapse of the Syrian Pound, based on the success the Central Bank has achieved in the past five years, appears real as the regime is not seeking out other alternatives. But to what degree is this correct, and can the Central Bank control the initiative once more in the event new stocks were made available for it?
Of course the regime does not believe in economy and productivity to defend the Pound, because it was the first to start destroying the economic infrastructure of the country when it raised the slogan of burning everything for al-Assad. And it is still insistent on continuing to burn, and it is turning to the Central Bank to perform this role. From its side, the Central Bank is waiting for the new stocks that will enter its vaults to recommence its role. Until that new comes maybe the dollar will have surpassed 1000 Syrian Pounds. It is the logic of production which the regime has started to think with, as the regime will need at least a full year before it reaps the results.
The question which proposes itself, what if this productivity is not achieved? What will the situation of the Syrian Pound be after a year? We do not want to speculate about this matter, but economic logic dictates that the collapse will be resounding this time. We would not be surprised that the dollar reach 5 thousand Syrian Pounds and suddenly.
The Syrian tragedy has become open to all possibility, and maybe the Syrian Pound is the lest damaging in this tragedy. (Writing by Fuad Abdul Aziz; Translation by Rana Abdul)
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