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Syria flies in fresh banknotes from Russia as cash crunch hits economy

Digest opened free editor

The central bank in Syria flew new banknotes from Russia to reduce a severe shortage of money that left its economy to fight for work.

The central bank said on Friday that the Syrian pounds arrived “from Russia to Syria via Damascus International Airport”, but it did not confirm the amount of currency. There was an urgent need for criticism after bankers and companies said that the deficiency was strongly impeded.

The journey emphasizes the field of continuous dependence on Russia for the new Syrian government, which faces difficulties in buying banknotes from the West due to the sanctions on the state, forcing it to negotiate the delivery from a country that was closely allied with the coverage system Bashar al -Assad.

The manufacturer of textiles and retailers, which requested not to be named, said that the shortage had reached the point that “people stopped putting money in the bank because they are concerned about not getting it out.”

The rumors had passed on the Syrian social media about the arrival of the observations that awaited impatiently, but the central bank said on Friday that “the numbers revolving around the size and quantities of these funds were” completely inaccurate “, without confirming the details.

The waiting list of the Syrians outside a bank in Damascus to receive their salaries last week
A group of Syrians lining up outside a bank in Damascus last week to receive their salaries © Muhammad Al-Rifai/EPA-Enfe/Shutterstock

Foreign Minister Assad Al -Shaybani told the Financial Times last month that, during the era of the Assad government, the central bank will request currency shipments printed from Russia when needed. Goznak, the state -run Russian printer, Provide notesWhich must be constantly replaced.

Western securities printers will not immediately be able to increase supplies and will be reluctant to provide Syria with criticism in light of the continuous sanctions against the country, according to banknote experts, leaving the new government depends on Goznak at the present time.

It also remains unclear whether the new system is seeking to remove some Syrian banknotes from trading. One of the most widely used notes, the Syrian pound’s 2000 -pound bill includes the image of Assad, which now lives in Russia.

The central bank temporarily raised the withdrawals at the end of last month, but business and retail customers who are looking for money from banks are still far away.

Two bankers told the Financial Times, speaking on condition of anonymity, some private banks receive up to 600 million pounds (about 65,000 dollars on the black market widely used) every day from the central bank in recent weeks.

Businessmen say that the amount is not anywhere close enough to keep companies standing on their feet. Manufacturers and merchants cannot reach most of their bank deposits to pay suppliers and salaries.

“Traders pushed employees from [cash] Reserves, which have succeeded for two months, but how long can it last? One banker said.

The transportation between banks are still available, as businessmen use this method from time to time to buy and sell goods – one system similar to a roller with “false barter”.

The effect of the cash shortage has been exacerbated by the lack of information about the number of Syrian pounds circulating.

Unlike most central banks, Syria does not produce weekly data with details about the amount of banknotes circulating. Its website cannot be accessed, adding to blackout surrounding its operations.

Monetary leaves are often destroyed and removed from the blood circulation on a daily basis due to weariness, as central banks around the world are constantly renewing their stock.

The private banking system in Syria, two decades, has been used for commercial purposes, where citizens tend to adhere to their own money.

The tendency of people to avoid the banking system in the years before the fall of Assad when the regime began to seek financial information from a few private banks in Syria in an attempt to implement allocated taxes to the owners of large papers.

The Syrian economy has already been destroyed for 13 years of civil war, corruption on a large scale under the Assad regime and Western sanctions, including in its banking sector.

Companies say that despite the widespread euphoria that received the overthrow of the lion, their sales have decreased. Some are also pressure after the export restrictions are removed, which means that they must now sell the current stocks at a loss.

The fabric businessman said: “People do not spend because they do not know what will happen.” “Companies do not spend because there are no cash revenues, and the main priority is to pay employees.”

Meanwhile, Western governments maintained most of the sanctions against Syria and their banking sector. Some officials, including the European Union, have developed, Road maps to reduce measures In stages.

“There are a number of signs of confusion and lack of clarity,” said Jihad Yaziji, the news editor of the News of Syria report. “The economy is a big and large issue. There will be a decisive test for the new authorities in Damascus is to make sure [a] Fixed supplies of. . . Energy and bread, more generally, ensure the restart of the economy. “

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2025-02-14 12:16:00

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