Syrian central bank chief enraged by black market exchange rate
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E-mail Xinhua, May 10, 2013
Chief of Syria's Central Bank said Thursday the Syrian pound's exchange rate against the U.S. dollar in black market is "imaginary," accusing manipulators of using the recent holiday to achieve illicit gains.
During the six-day holiday in Syria that begun on May 1, a dollar was sold in the black market at 145 Syrian pounds, the highest ever in Syria's history. After the holiday, it declined again to 136 Syrian pounds.
Adib Mayaleh said the decline indicates that the rise was done by manipulators who took advantage of the closure of the government, private banks and licensed exchange institutions during the holiday, the state-run SANA news agency reported.
Mayaleh said his bank is still moving on with its policy of intervention to preserve the value of the Syrian pound, adding that "the Central Bank is always present to defend the exchange rate and its monetary reserves are strong and enough to do that."
Yet, economic researcher Qais Kheder said "What we are seeing now is semi-surrender of the economic team to the market mechanism; the mechanism of supply and demand, which has floating lately at a time when the economic team in remotely observing."
In a statement published by al-Watan newspaper, Kheder said the Central Bank had better intervened more effectively to control the market and rein in the prices' hike in almost all commodities.
He warned that unless the markets are controlled once again, any governmental intervention in the country's economic cycle will be in vain.
The tug-of-war between the government economic team and the market profiteers is about to be drawn to a close in favor of the latter, said the researcher.
Nonetheless, he said the situation is still viable for recovery despite the pressure practiced by foreign factors that push toward the contraction or the stagnation of the Syrian economy.
The dollar scored its first increase against the Syrian pound in February 2012 when it was traded at 108 Syrian pounds, an issue that had then pushed the Central Bank to pump large amounts of dollars into the market. The exchange rate was brought back to 70 Syrian pounds per dollar shortly afterwards.
However, the bank has not succeeded in doing the same thing once again despite repetitive pledges to interfere.
Observers said dozens of manipulators have been arrested lately in yet another effort by the government to prevent any further decline of the Syrian currency. Endi
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