The Syrian regime is implementing its plan to unify the official price of the dollar through the issuance of a new bulletin. This new bulletin supersedes all previous bulletins, except for the “remittances and exchanges” bulletin. Interestingly, the timing of the new bulletin coincides with a significant increase in the dollar price by nearly 2,000 SYP, suggesting the regime’s intention to expedite the depreciation of the SYP.
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The recently introduced “Official Market Bulletin” sets the dollar exchange rate at 8,500 SYP for purchasing, 8,585 SYP for selling, and an average price of 8,542 SYP. Furthermore, the bulletin establishes a fixed price of 8,500 SYP for remittances to legal persons. It is worth noting that the Central Bank of Syria had already increased the dollar exchange rate from 6,532 to 8,542 pounds ahead of the issuance of the new bulletin.
Arab pressures
The new bulletin is intended to encompass all types of tariffs, except for individual remittances and remittances from international organizations, which will continue to be published under the “Remittances and Exchange” bulletin. Notably, the Customs and Aviation Bulletin maintains the dollar’s value at 6,500 SYP, and this rate is confirmed to be valid until July 31st.
Younis al-Karim, an economic researcher and director of the “Economist” platform, perceives the new pricing as a unification of the exchange rate, resulting in two distinct lists. The first list includes individual remittances and organizations, issued within the “Remittances and Exchange” bulletin, while the second encompasses all other types of remittances, regardless of their source.
Karim further explained to Al-Modon that the unification of the exchange rate was influenced by Arab pressure due to the re-establishment of relations with the regime. Arab countries had been demanding the unification of the exchange rate. Simultaneously, the regime aims to attract new investments through this move. With the new tariff raised to 8,500 SYP, it has become more reasonable than the old price, making it an attractive factor for investment. However, it’s essential to note that there is still a significant difference with the black market dollar, which has exceeded 13,000 SYP.
SYP continues to deteriorate
Consequently, the official market bulletin serves as a cancellation of the bulletin of banks and any other pricing, except for the remittance and exchange bulletin concerning natural persons and international organizations. It also signifies the announcement of the unification of exchange rates. As for the 15-day customs bulletin, it is likely to be its final release.
Economist Radwan Debs believes that the new bulletin reflects the system’s attempt to approach the real price of the dollar in the floating market. This rationale justifies the significant acceleration in price changes observed in the official bulletins issued by the Central Bank.
These measures have repercussions on the black market dollar rate. Debs pointed out during an interview with Al-Modon that every official increase in the dollar’s price is accompanied by an unprecedented surge in the black market rate.
Looking ahead, Debs expects the SYP to continue declining due to unfavourable conditions for an improvement in the exchange rate. The regime-controlled areas are witnessing considerable deterioration in most service and economic affairs. Additionally, any Arab rapprochement with the regime has failed to yield any notable economic improvements.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
