USD rate hits SP 200, can reaches 300, results of real crisis: Expert: Translation by Yusra Ahmed (Eqtsad)- US Dollar exchange rate in Syria has increased recently, that raises a question about the nature of that elevation, would it be temporary like waves happened before, or could be permanent and resulted from real crisis in the Syrian regime’s budget and economy.. Husein al-Ammash, a Syrian Economist supports the idea of permanent elevation of USD exchange rate, he expects a Dollar’s price to hit SP 300. The Economist explains that drop in the Syrian Pound’s price resulted from real and long term drain of the reservoir of currency in Syrian Central Bank and losing the ability to survive longer in defending the Syrian Pound value. “if the Central Bank carried on this trend, it would lose all stand-by storage of foreign currency, which would not suite the close circle of the regime” Moreover, al-Ammash explains: “If that happened, it would be an indicator for terminal collapse of the Syria Pound’s value and exchange rate could reach to SP 300 for a USD, combined with collapse of the economical activities in Syria”. The expert thinks that inability of the Syrian regime to keep power and control in the country, has a big effect on people’s, especially pro-regime, feelings of security and confidence of regime’s ability to survive, which encourages them to get rid of the Syria pounds they have and save their money as Dollar and other foreign currencies, which would lead to on-going elevation of the Dollar exchange rate. “Economy and currency are based on security and stability, which are lost in Syria, the black market’s prices are good indicators for the real crisis of the economy, which is noticeably higher than the official rate”, the Economist continues. Al-Ammash adds that rumors about reducing the financial support both Iraq and Iran provide to Syria for political reason, one of them is the change of Iraqi Prime Minister, while the other change in Iran’s confidence of Syrian regime’s ability to survival, besides the increase of the International restriction on trade and money transfer. The Economist regrets the status of the Syrian Central Bank especially of what is known about its inability to support the Syria’s economy in peace time, how it would manage in this time of revolution and lost of the country’s power. USD exchange rate reaches to SP 200 these days, after continuous increase in the rate, moreover, it is expected for the USD exchange rate to carry on rising in future
Posted on: Mon, 15 Sep 2014 22:33:33 +0000
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