Economist: pledge to re-cut exports will not bring dollars to Damascus government
Economist: pledge to re-cut exports will not bring dollars to Damascus government
DAMASCUS, Syria (North Press) – An economist in Damascus said on Tuesday that a pledge to “re-cut” exports will not bring foreign currencies to the government, and it will hinder the movement of exports.
Re-cutting exports means obliging the exporter to return the value of his foreign exchange exports to the Central Bank (i.e. sell them) at the official rate, which is currently 1,262 Syrian pounds per one US dollar as opposed to the black market rate of 3,530.
Last Sunday, the Damascus government asked the federations of the chambers of industry and commerce to submit their proposals regarding the return of work by undertaking to re-cut exports partially or completely.
The economist, who lives in Damascus and asked not to be named, said that this process is considered theft.
The economist stated that there are well-known merchants who control foreign exchange and the economy, while the Syrians at home suffer from an acute shortage of fuel, and even a loaf of bread.
It is noteworthy that the application of the regulations on export undertakings and return of foreign exchange began in 1988, when all proceeds of export cuts were sold to the state, and amendments were made to the decision during the past years, until it was frozen in mid-2016.