On Sunday, the exchange rate of the Syrian pound collapsed to the level of 6,050 against the dollar, according to Orient Net.
The Syrian pound has recently witnessed a continuous decline at a steady pace, exceeding 6,000 pounds per U.S. dollar for the first time in its history. This comes in conjunction with the exacerbation of economic crises plaguing the areas controlled by the Assad regime, especially the fuel crisis, which caused paralysis of vital sectors amid the regime’s inability to find any solutions.
On Sunday, the exchange rate of the Syrian pound collapsed to the level of 6,050 against the dollar, according to the site Lira Today specialized in monitoring the prices of the Syrian currency. It has lost a fifth of its value before foreign currencies during the past two months.
With the Syrian pound continuing to bleed at an almost regular pace over the past three weeks, expectations suggest it could fall to unprecedented lows.
Regarding the reasons for the recent decline in the value of the Syrian pound, economic analyst Dr. Yahya Al-Sayed Omar told Orient Net that this is due to a number of internal and external reasons.
Internal causes
Mr. Omar stated that the internal reasons are related to the increase in demand for the dollar and the increase in the supply of the pound in the Syrian market. He explained that the increase in demand for the dollar is due to the need to import additional quantities of fuel from the international market as a result of the almost complete lack of electricity, which led to an increase in dependence on fuel as a main carrier of energy. The import of fuel leads to a sharp increase in demand for the dollar.
He pointed out that the increase in the supply of the pound is due to several factors, including the exaggeration of relying on deficit financing through the continued printing of the Syrian pound without a parallel production balance. The Syrian banking system has completely lost its effectiveness, as the majority of the Syrian currency is outside banks. Companies and individuals do not deposit in banks unless they are obligated to do so.
https://syrianobserver.com/news/80724/four-reasons-behind-the-accelerated-collapse-of-the-pound.html