Damascus-Sana
The announcement of the Central Bank of Syria to offer the new cash denomination of 5,000 Syrian Pounds in circulation yesterday was a step in the right direction in light of the current local economic variables, securing the market needs of all denominations of banknotes and filling the need for a larger cash class commensurate with the needs of cash circulation and meeting the expectations of actual trading needs of these The papers.
In this context, a number of experts in financial and economic affairs considered that offering the 5000-pound bill for circulation from the Central Bank facilitates cash transactions and reduces the intensity of dealing in banknotes due to the high prices during the years of war and the unilateral coercive economic measures imposed on Syria and the gradual disposal of damaged banknotes.
The economic expert, Dr. Abed Fadliya stated that the introduction of large monetary denominations does not cause any inflation, but rather is a necessity to facilitate transactions in an economy that contains a percentage of inflation that occurred gradually during the years of the terrorist war, the economic blockade and the rise in prices, which led to the need to increase the monetary mass on the one hand and the use of larger monetary categories On the other hand.
Fadliya emphasized that the Central Bank’s move is a normal procedure in Syria, as in any country in the world that has gone through similar circumstances, and history has witnessed for at least a hundred years now that most countries of the world printed cash denominations in tens and hundreds of times the categories used for dealing, adding that we are talking about introducing a new cash denomination and not A new economic, financial, or monetary situation, and therefore the offering of the 5000 paper does not have any negative economic or living impact at all, but on the contrary it has a positive effect, which is facilitating transactions, stressing the importance of a correct understanding by everyone of the goal of this proposal and not being drawn behind everyone who promotes fears Or negative psychological effects of such a procedure.
For his part, the expert and economic consultant, Dr. Maher Sinjar, stated that offering the 5000-pound bill at the present time is logical for a number of reasons, the first of which is to enhance the role of cash as a means of circulation more than its other functions, especially that cash payment is the common form in force in Syria and because the electronic payment project is still in its infancy. This new cash category contributes to solving a problem related to the volume of sums carried and transferred between banks, pointing out that the introduction of new cash classes usually coincides with a reduction in the size of other worn out and circulating categories.
Sinjar indicated that the strength of the economy is the main supporter of the Syrian pound, so it is necessary to think about supporting the bearers of this economy with measures that will support the productive sectors, especially agriculture and industry, by supporting loans and reviewing the ceiling of loans granted to large enterprises in conjunction with the introduction of this category.
In turn, economic researcher Samer Abu Ammar considered that offering the new cash category 5000 pounds is a correct step to replace the damaged monetary units categories that are in circulation, explaining that the Central Bank did not issue a new currency or finance its expenditures through a deficit financing policy. Convenience was placed in circulation and this is a normal procedure that will not adversely affect the prices of goods or services.
Abu Ammar added that offering a 5000-pound bill would improve the conditions of exchange operations between merchants and citizens and between banks, or facilitate the transfer of funds due to the urgent need to transfer large quantities of cash sometimes between governorates or sometimes to meet some needs such as shopping because of the high prices and the large gap between the average value of the basket. Food and the number of units of money that must be carried to buy that basket.
He explained that all the conversations that are going on about rising prices due to the introduction of this category of cash are the implications of the psychological factor for citizens, thinking that every new money issue is accompanied by a new wave of high prices for goods and services, indicating that this factor will fade over time, when it becomes clear. The picture is that this is not a new monetary issue, but rather a change in the monetary denominations placed in circulation.
Ahmed Suleiman and Manar Deeb