CBS Governor: Intervention Session to Restore Stability, Balance of the Exchange Rate

DAMASCUS, (ST) –In a statement to reporters after a meeting of the Monetary and Credit Council, chaired recently by the PM, to follow up the reality of the exchange rate of the Syrian pound, the governor of the Central Bank of Syria (CBS) Adib Maiyyaleh stated that the meeting  included a push and a directive by the Prime Minister for the work to the benefit of the Central Bank and the Monetary and Credit Council to take the necessary resolutions to address the immediate situation concerning the rise in the exchange rate and the intervention in the market strongly and immediately due to the fact that the Central Bank of Syria is the biggest player in a market that regulates the foreign exchange market, indicating that the goal of  taking such a step is to restore  the equilibrium exchange rate and maintain stability as it was in the previous period.

“Two important resolutions to intervene in the market were adopted; first a segment of the foreign exchange estimated at 20 million dollars will be sold on Monday 21/04/2014 to exchange companies to enable them to finance the requirements of the market and fill the needs of any foreign objects, adding that  there will be an offer of 20 million dollars by the Central Bank of Syria for the sale of the exchange companies to be able to meet the demand for financing imports and the needs of the market,” the CBS Governor explained.

Regarding the second resolution, the Governor of the CBS clarified that it will be allowed to leave 20 percent of the personal remittances coming to Syria daily.  The value of the amounts range between 1,5 and 2,5 million dollars a day to be put in the market in real time by the exchange companies so that the companies can act and sold these amounts according to the needs of the market.

“The next session of intervention will be followed by other sessions for the sale of foreign currency needed in the market to restore stability and balance of the exchange rate, which was up to 150 Syrian pounds in the previous months, pointing out that the exchange rate has risen recently as a result of the large economic attack on Syria and the presence of speculations on the Syrian pound from countries abroad and speculators at home,” Mr. Maiyyaleh underlined.

He renewed the readiness of the Central Bank of Syria to fund all requests for financing imports between 2 and 5 million dollars a day.

Sharif el -Khatib