CBS Announces ‘Security Intervention’ Amid Exchange Rate Deterioration 

Syria’s central bank has attempted to correct a spiraling currency crisis by shutting down businesses, reports Al Souria Net.

The Central Bank of Syria (CBS) announced its intervention in the foreign exchange market, after the exchange rate of the Syrian pound against the dollar plummeted, reaching record levels, during the past few days. 

However, CBS’ intervention process was not by releasing foreign currency in the market, but rather through a security intervention whereby it “seized a group of companies and competing entities,” according to a CBS statement.

The bank said, in its statement on Sunday, that “the Central Bank has taken a set of measures to intervene in the foreign exchange market in an attempt to restore stability and achieve balance, in cooperation and coordination with the concerned authorities.” The bank added, “the Anti-Money Laundering and Counter-Terrorism Financing Authority and the judicial police carried out many missions in various governorates, specifically the governorates of Damascus, Hama, and Aleppo, which resulted in seizing a group of companies and entities that work on competing with the pound.”

CBS confirmed the confiscation of large amounts of funds in pounds and dollars, announcing that it would continue to “intervene in various aspects and use its tools to stabilize and preserve the national currency.” 

CBS considered that “the rumors that accompanied the release of the 5,000 pound denomination aim at using intimidation to abandon the national currency.”

On January 24, CBS released a new cash banknote denomination, the 5,000 pound, whose exchange rate at the time was 2,910 pound per 1 dollar. The rate rose to 3,380 pound per 1 dollar over the past two days, according to the Syrian Pound Today website. This is the first time that the exchange rate of the pound reaches this level in history. It reached 3,100 in May of last year. 

 

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.

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