[ad_1]
Traders said: “The Syrian pound was trading around 3,500 against the US dollar on Sunday, its strongest level in a month. It rose 12 percent on Saturday, offsetting losses that brought the currency to its lowest level at 4,000. earlier this month. “
Bankers and businessmen said the pound’s rise came shortly after the Central Bank of Syria required banks last week to limit withdrawals at two million pounds ($ 572), up from the previous limit of 15 million. pounds.
They added that the Central Bank also worked to limit the movement of cash within governorates to no more than five million pounds and impose a one-million-pound ceiling for transfers within government-controlled areas to reduce demand for dollars.
A senior businessman familiar with central bank policy said by phone from Damascus: “It drains the liquidity out of people’s hands and forces the dollar down because it is supply and demand.”
“The problem is that it is an artificial way to raise the currency,” added the businessman, who requested anonymity when asked about measures to curb the growing dollarization of the economy, which was paralyzed after a ten-year war.
The depreciation of the currency has fueled inflation and exacerbated hardships as Syrians scramble to provide food, energy and other essentials.
The pound was trading at 47 to the dollar before the outbreak of protests in Syria in March 2011.
Businessmen and bankers said the new restrictions, which also included a security crackdown on exchange traders accused of causing devaluation, were poorly planned and would be counterproductive.
“Two exchange houses said that last week the security forces arrested dozens of merchants and seized millions of dollars in Aleppo, Hama and the capital,” said a banker, who asked not to be identified.
Bankers said the central bank, which has largely abandoned efforts to back the currency, has also cut unnecessary imports in the past two months to preserve the remaining foreign currencies.
