Syrian Pound Diverges from Official Rate Amid Trade Deficit and Energy Costs
The Syrian pound's value has been diverging from its official exchange rate due to persistent macroeconomic pressures, including a chronic trade deficit and high energy import costs.
A week ago, the currency market showed relative stability, with the Central Bank of Syria maintaining an official exchange rate of 121.50 pounds to the dollar for buying and 122.50 pounds for selling.
However, the parallel market rates have moved further away from the official rate, with the pound trading at 135.75 pounds to the US dollar for buying and 136.50 for selling in the parallel market, widening the gap by nearly 12%.
Economic expert Dr. Ali Mohammad attributed the divergence to Syria's trade balance suffering from a 'very large gap and deficit,' estimated at between $3 billion and $4 billion.