New exchange rate to increase prices in Syria: Banking expert
DAMASCUS, Syria (North Press) – On Saturday, a banking expert residing in Damascus, told North Press that the exchange rate of the US dollar has started to decrease in the local market as traders and exporters become able to secure a source to finance their transactions in foreign currency at a price slightly less than the black market price.
On Wednesday, the Damascus Chamber of Commerce stated on its official Facebook account that exchange companies would sell foreign currencies to finance imports at a price of 3,375 Syrian pounds (SYP) “according to a priority to cover food and pharmaceutical imports.”
The expert added: “The decision will increase competition among traders in the dollar market. The decision of the Damascus Chamber of Commerce was to raise the dollar price for industrialists and traders to twice the official rate, and it was approved by the Damascus government, despite the Central Bank’s neglect of that decision until now.
“Prices of goods are will increase after the implementation of the decision,” he mentioned.
He stressed that the exchange rate of 3,375 will negatively affect the consumer, since most of the consumption is currently concentrated in foodstuffs, which means a new wave of price hikes.
“Since the current exchange rate of the US dollar in the Central Bank is 1,256 SYP, how will it be when adopting a rate nearly twice the official exchange rate?” he wondered.
Meanwhile, over keeping the price according to the Central Bank Bulletin, the expert said, “This price is used on paper, as exchange institutions will start selling dollars at the rate of 3,375 SYP, and this confirms that the matter was done with the approval of the Damascus government.”