Syrian Central Bank Devalues ​​Local Currency By Almost 50% CryptoBlog

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The Syrian central bank recently announced the devaluation of almost 50% of the exchange rate of the Syrian pound against the greenback from 3,015 to the dollar to 4,522 to the dollar. The central bank has also warned currency speculators that it will take steps to end activities that undermine the stability of the exchange rate.

Currency collapse worsens plight of Syrians

Syria’s central bank said on January 2 that it had adjusted the official exchange rate from 3,015 pounds for every dollar to 4,522. Yet despite the nearly 50% devaluation, the new official exchange rate would still be higher. by more than 40% at the parallel market rate of 6,500 pounds to the dollar, according to a Reuters report.

According to the report, the collapse of the Syrian pound, which traded at 47 to the US dollar before the 2011 protests against the government of Bashar al-Assad, has caused commodity prices to rise. Rising prices have in turn worsened the plight of Syrian residents who have faced shortages of basic commodities like fuel and electricity.

In addition to the ongoing civil war, Syria continues to suffer from the effects of Western sanctions as well as the financial crisis in neighboring Lebanon. The loss of oil-producing territories located in the northeast of the country has worsened the financial situation of the government.

Warning to speculators and currency manipulators

Meanwhile, in a statement issued on Jan. 2, Syria’s central bank said it was ready to take steps that would restore confidence in the local currency.

“The Central Bank of Syria continues to monitor the stability of the exchange rate in the local market, to take all possible means and measures to restore the balance of the Syrian pound, and to monitor and deal with all illegal operations that undermine stability of the exchange rate,” a statement on the central banks’ website said.

The bank also promised to intervene by taking measures that would help put an end to speculative activities and the manipulation of the foreign exchange markets.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer in Zimbabwe. He has written extensively on the economic issues of some African countries as well as how digital currencies can provide an escape route for Africans.

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