Benefits of Syria Central Bank's decision to deliver remittances in US dollars to economy

On Wednesday, the Central Bank of Syria allowed banks, exchange companies, and money transfer companies to deliver remittances received from outside the country in foreign currency or the Syrian pound, according to the beneficiary's desire.

Observers believe that this will help stabilize the market and regulate financial transactions.

Economic expert George Khazam confirmed that the decision will achieve tangible benefits for the Syrian economy and the Syrian pound alike, explaining that transferring all foreign remittances in dollars to the Central Bank, instead of money changers, will contribute to increasing collection commissions in dollars for the benefit of the public treasury.

Khazam indicated in several posts on his personal Facebook page that this measure will lead to a significant decrease in the dollar exchange rate on the black market, as a result of the increase in the supply of dollars for sale, which will transform the dollar from a hard, high-value currency to an easy, low-value currency available to everyone.

The expert explained that the decrease in the dollar exchange rate will enhance the purchasing power of weak salaries and lead to a significant reduction in prices. It will also increase the purchasing power of the cash reserves in the Syrian pound in the banks, which will have a positive impact on the economy in general.

Khazam also stated that the new decision will accelerate the repayment of bad loans, as borrowers will take advantage of the high purchasing power of the Syrian pound to fulfill their obligations.

This trend will enhance the deferred buying and selling of goods without the need to insist on cash payment, especially with the fixing of sales and purchase invoices in dollars without fear of prosecution. This will significantly move the economic wheel in the market.

Allowing importers to secure dollars from their own sources will lead to an abundance of dollars in the public treasury, which will enable it to finance imports and public sector expenses efficiently.

The economic expert concludes that this step will limit the transfer of dollars to the private sector, which possesses quantities of dollars exceeding what the Central Bank possesses.