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Deputy Governor of the Central Bank: The exchange rate is moving towards control and stability

2020-01-21T18:46:18.440Z

Deputy Governor of the Central Bank of Syria, Dr. Issam Hazmeh, affirmed that the exchange rate is heading towards control and stability despite



Deputy Governor of the Central Bank of Syria, Dr. Issam Hazmeh, affirmed that the exchange rate is heading towards control and stability despite the terrorist war and unilateral coercive economic measures imposed on Syria and the so-called "Caesar Law".

With regard to the difference between the possession of the dollar and dealing with it or its circulation, a defeat during a meeting with Sana made it clear that the law is generally punished for trading other than the Syrian pound, but possession and ownership are safeguarded by a constitutional principle and they are legally called “sacred rights” and it is not permitted to harm individuals ’property, whether in dollars or other Currencies But the imperatives of preserving the stability of society and the national economy require preventing the circulation of any currency except the Syrian pound.

Hazema warned against the dangers of dealing outside the Syrian pound, as the penalty for that was tightened for reasons related to economics and economic policies, noting that Decree 3 of 2020 indicated that possession and property are protected for individuals and that no one has the right to harm them except in accordance with the law by confiscation in the event that an offense in which a legal text is committed is a criminal penalty Stressing that Legislative Decree No. 4 of 2020 considered rumors a felony and an increase in the punishment imposed on him.

In response to a question regarding possession with the intention of trading in dollars on the black market, Hazema pointed out that the law does not punish intentions, but according to the facts and circumstances surrounding each case, and in no case can anyone be held accountable for the source of foreign exchange in their possession, except in the event of suspicion of corruption explained in this. The context is that the Central asked banks to facilitate the opening of bank accounts for the longest extent. The information on the identity card of the applicant for opening the account is sufficient in principle, but the banking system requires that the residence proof is required not to restrict freedom but to make sure that the account applicant is in Syria legally.

On the reasons for the high exchange rate, the defeat made clear that there are reasons represented by internal speculation by weak souls and external through websites and pages of communication sites that transmit unrealistic figures for the exchange rate managed by persons from Gaziantep in Turkey, Cyprus, Greece and the so-called “Caesar’s Law” and coercive economic measures The unfair imposed on Syria, indicating that the exchange rate is determined according to economic equations based on supply and demand or the economic conditions of society, otherwise it is not objective, logical or correct.

The Deputy Ruler pointed out that the prohibition of dealing in dollars is aimed at individuals and relates to the quality of transactions whether they are internal or external as the regulations, decisions and controls issued by the central and other ministries allow the merchant whose business or business needs to deal in dollars to deal with it within certain channels that have been set by the central such as Financing by cutting through the banks, explaining that there are external transactions, such as import, legally authorized within the controls in the Central Bank of Syria and the Ministry of Economy and Foreign Trade.

In response to a question about financing import licenses other than the permitted materials for financing their import, he explained that the central bank asked the banks to give priority to the basic materials over others by financing in foreign exchange and was not prevented from funding all import licenses, explaining that there is a list of basic materials that must be funded to import from the central according to its controls And the decisions of the Ministry of Economy and Trade

The Ministry of Foreign Affairs is represented by "rice, sugar, oils, fats / dukma / tea, infant formula, milk, agricultural seeds, eggs for hatching, chicks for mothers, grandmothers, eggs, human medicines and their raw materials" in addition to satisfying the needs of the public sector rationing entities such as tons, sardines, basic foodstuffs and operational requirements.

With regard to the significant difference in the price of basic materials between the market and positive intervention institutions, he saw defeat that the error does not lie in financing the import of these basic materials according to the exchange rate bulletin issued by the central, but it may lie in the presence of a defect in the mechanism of implementing the import license by some traders as a result of their greed and lack They were satisfied with the reasonable profit margin, stressing that there are severe penalties by the legislator and the central authority as a supervisory authority for public and private banks against the right of those who cause high prices of basic materials and violating the terms of financing, whether they are individuals or banks.

Hazema explained that the list of materials allowed to be funded for import is discussed by the Economic Committee, the Ministry of Economy and Foreign Trade and the relevant ministries in coordination with the Central Bank, reiterating that there is no exclusivity in financing import licenses for a merchant exclusively and that the priority is to finance the list of basic materials that are permitted to be funded.

Hazema pointed out that allowing citizens and holders of the dollar to sell it to the central at a preferential price of 700 Syrian pounds for one dollar is aimed at facilitating them and reducing the burden on them and attracting them by allowing them to legally sell foreign currencies in official channels with notification of assets and without documents or papers in order to give them reassurance and miss the opportunity to Speculators on the black market, as well as a preferential price have also been granted to international organizations recently, indicating that there are positive responses to the decision and many citizens flock to the central and its branches to sell their foreign currencies in their possession.

He saw defeat that the financial crises in Lebanon and Iraq and the closed crossings negatively affected the national economy because a number of traders from the beginning of the crisis and in light of the unfair economic measures imposed on Syria changed their financial position to neighboring countries and when the crisis began in Lebanon and others, these traders were affected.

In response to a question about the Lira initiative, our pride and other national initiatives that support the Lira, he considered defeat that there are many positives for these initiatives and great moral support for the national economy.

With regard to the economic situation in Syria, the Deputy Governor of the Central Bank saw that the exchange rate is heading towards control and stability, stressing the importance of cooperation and integration by institutions and citizens despite the difficult circumstances and sanctions to advance the economic reality.

In response to a question about whether there is a tendency with the central to stop exchange institutions, whether companies or offices permanently and completely, he explained a defeat that the central bank temporarily closed 14 exchange institutions came upon the commission of violations and failure to perform the role required of them to support the stability of the lira and there will be no exclusivity of By allowing institutions to operate without others, confirming that if they were

Violations committed by any exchange institution that requires its final closure will be done, and the status of all institutions will be studied, indicating that the penalties imposed by the Central have a deterrent and alerting aspect to the institutions authorized by him of the necessity of adhering to the laws under penalty of a heavier penalty against them that may reach the final closure.

Wasim Adawi

Source: sena

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