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Central Bank of Syria restores control over currency market

HASAKAH, Syria (North Press) – The Central Bank of Syria resorted to raise the exchange rate of the dollar in order to restore its control over the currency market.

The Central Bank of Syria has set encouraging policies to increase the transfers received through official channels with the aim of moving the exchange rate of remittances and bringing it close to the black market prices, official source said.

On April 14, the Central Bank of Syria issued a decision in which raised the dollar exchange rate for expatriates returning to Syria from the diaspora countries to 2,500 instead of 1,250 SYP, according to what was published by the semi-official al-Watan newspaper.  

According to the source, the effect of the decision has decreased the prices of all foreign currencies against the Syrian pound, and by this way, the Bank will be able to tighten its control over the currency market and return the dollar to the official channels.

Walid Ahmo, owner of an exchange office and familiar with economic matters, explained the mechanism the Central Bank adopted by “withdrawing dollars from the market, especially from northeastern Syria, through unknown clients.”

“In the Jazira region, there are approximately 400 remittance and money exchange offices, that is, about 15 million dollars enter northeast Syria every month through remittances that come from abroad,” Ahmo said.

“When it increases the demand for a dollar, the exchange rate rises, and people also buy dollars from the market for fear of the collapse of the Syrian pound,” he added.

When the Central Bank withdraws its sufficiency, a state of stability took place, and then the dollar is offered to the market, and the exchange rate falls, according to Ahmo.

On Monday morning, the exchange rate of the dollar against the Syrian pound decreased to 2,900 SYP, compared to 3,000 SYP yesterday.  

Reporting by Dilbreen Moosa

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