Central Bank governor dismissed over Syrian currency collapse: economic expert
DAMASCUS, Syria (North Press) – On Wednesday, a monetary policy economist said that the dismissal of the governor of the Central Bank of Syria from his post is a way to hold him responsible for the collapse of the value of the Syrian Pound.
The work of the governor of the Central Bank Hazem Karfoul was suspended in late March, and his dismissal decision was issued on Tuesday.
The Damascus-based expert said in a statement to North Press, “His deputy and a committee of economists have been assigned to manage the bank’s work, pending the appointment of the replacement.”
On Tuesday President Bashar Assad dismissed Karfoul and he did not appoint a replacement or give a reason for the dismissal, amid a stifling financial crisis the country is witnessing.
“Dismissal of the governor cannot only be due to the collapse of the Syrian pound against the US dollar that reached 4,500 Syrian pound (SYP) in the parallel market, and the price of each gram of gold to 240,000 SYP,” he stated.
“The dismissal came to hold the governor responsible for the collapse of the exchange rate, that exceeded 5,000 SYP, knowing that the governor is not the only one to run the monetary policy, but rather there are other guardian bodies that control the exchange rate,” according to the expert.
“The dismissal decision will be accompanied by issuing a pre-emptive seizure of his movable and immovable assets by the Minister of Finance that he registered in the name of his brother Iba’ Karfoul,” he added.
He pointed out that the main issue after the dismissal is “to gain the satisfaction of Syrians, who are angry regarding the collapse of the Syrian pound and more than 83% of which fall under the poverty line.”
On September 24, 2018, Karfoul was appointed to succeed Duraid Dergham, and the exchange rate was then 500 SYP, while it is today about 3,300 SYP.