Writing by Abdul Monem Halabi; Translation by Yusra Ahmed
(Eqtsad)- A significant difference in the exchange rate of the U.S dollar against the Syrian pound has been remarked in besieged areas, where the Lira seems to be in better value.
There are many reasons behind the better value of the Syrian pound in besieged areas, on them is that people need to pay for smuggled goods in Syrian pounds, as the smugglers fear of confiscation of the U.S Dollars if they were caught by the security forces during moving between besieged areas of those controlled by the Syrian regime. Therefore, the Syrian pound still safer option to carry and they stay away of being convicted of dealing with foreign currency.
The recent situation in which routes are closed to wide areas controlled by different military formations and the Islamic State , beside obstructing ways for transporting goods in areas not controlled by the Syrian regime, especially in the time of high demand on goods and food for Ramadan, could play a positive role on helping the Syrian pound to recover after the unprecedented drop against the U.S dollar which reached to 600 SYP for one U.S Dollar.
Although besieging wide areas and exposing people to huge suffering is not intended policy to support the Syrian Pound, but it can be used, especially after the report of the World Bank titled: “Economic Observatory for the Middle East and North Africa – Spring 2016”, in which it mentioned that that the Central bank of Syrian has experience sharp decline in cash reserves, which quickly reflected on the dollar on the black market, where the exchange rate declined to an unprecedented levels and reached nearly 600 SYP to the U.S Dollar.
The report mentioned that Syria’s growth is expected to continue to contract in 2016 by 8 %, while the medium-term macroeconomic prospects hinge on containing the war and finding a political resolution to the conflict, and rebuilding the damaged infrastructure and social capital.
(Eqtsad)- A significant difference in the exchange rate of the U.S dollar against the Syrian pound has been remarked in besieged areas, where the Lira seems to be in better value.
There are many reasons behind the better value of the Syrian pound in besieged areas, on them is that people need to pay for smuggled goods in Syrian pounds, as the smugglers fear of confiscation of the U.S Dollars if they were caught by the security forces during moving between besieged areas of those controlled by the Syrian regime. Therefore, the Syrian pound still safer option to carry and they stay away of being convicted of dealing with foreign currency.
The recent situation in which routes are closed to wide areas controlled by different military formations and the Islamic State , beside obstructing ways for transporting goods in areas not controlled by the Syrian regime, especially in the time of high demand on goods and food for Ramadan, could play a positive role on helping the Syrian pound to recover after the unprecedented drop against the U.S dollar which reached to 600 SYP for one U.S Dollar.
Although besieging wide areas and exposing people to huge suffering is not intended policy to support the Syrian Pound, but it can be used, especially after the report of the World Bank titled: “Economic Observatory for the Middle East and North Africa – Spring 2016”, in which it mentioned that that the Central bank of Syrian has experience sharp decline in cash reserves, which quickly reflected on the dollar on the black market, where the exchange rate declined to an unprecedented levels and reached nearly 600 SYP to the U.S Dollar.
The report mentioned that Syria’s growth is expected to continue to contract in 2016 by 8 %, while the medium-term macroeconomic prospects hinge on containing the war and finding a political resolution to the conflict, and rebuilding the damaged infrastructure and social capital.
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