CBS: SYP Exchange Rate against USD Stable in Its 3rd Week
Apr 20, 2011
Damascus, (SANA) – The SYP/ USD exchange rate continues stable at 47,69 for the third week in a row, while the Euro started off the week's trading at 68,74 and closed at 69,18, recording a 0,64 % increase.
According to the Central Bank of Syria (CBS) weekly report, the increase in Euro exchange rate against the SYP is attributed to the fact that the Euro hit record high against the US dollar over the week, soaring to its highest levels within 15 months as the European Central Bank raised the interest rate in the Euro zone coinsiding with a slip in the USD exchange rate against most of the major currencies.
The stability of the SYP exchange rate against the US Dollar can be attributed to the measures taken by the CBS to support its exchange rate under the conspiracy aimed at destabilizing Syria's national economy, the report added.
The CBS efforts at preserving the stability of SYP exchange rate include activating the Cabinet's decision No. 84 which allows the Syrian citizens to purchase foreign currencies by less than USD 10,000 monthly, in addition to allowing the exchange companies and offices to purchase the USD from the CBS to meet their foreign exchange needs and bridge the demand-supply gap resulted from the political tension in the Arab region and its impacts on Syria.
Central Bank raises the interest points and reduces the reserve requirement and allows savings in foreign currencies
04 May .2011
Damascus - SANA
Allowed the Central Bank of Syria for banks operating licensed to deal in foreign currency sale of natural persons Syrians / and the like / and one-time only / USD or EUR / according to the release rates of exchange issued by the Central Bank of Syria and various amounts of up to 120 / / thousand U.S. $ provided that is the deposit of the value of foreign exchange to the same bank account and deposits to different deadlines set at the amount sold, based on the Prime Minister's Decree No. / 5936 / dated 02.05.2011 and on the recommendation of the Management Committee of Central Bank of Syria 610 / for a 28 / 4 / 2011. The resolution specifically to segments of deposits in foreign currencies that can benefit the client, which can benefit from them by his desire to have the text of the resolution of the calculation of interest on these deposits in accordance with interest rates set by the Central Bank of Syria and added to the accounts on a monthly basis and paid to depositors on maturity.
He also gave the right decision for the owners of these accounts after the expiration of the term deposit renewal of deposit or withdrawal of the account balance in cash or sold to foreign bank to obtain the corresponding value in Syrian pounds.
This has allowed the resolution to the owners of these deposits to withdraw its value before the maturity date under the penalty of cancellation of the benefits of it in case it was not the entitlement of these benefits for three months and paid in Syrian pounds, according to the exchange rate on the deposit.
It provides this decision benefits both the bank and citizen alike For the Bank provides this resolution and flexible means to meet the demands of customers in foreign currencies and supports the liquidity of these banks in foreign currencies of the other hand, this product provides a secure means of saving and therefore for the citizen who wishes to retain deposits in foreign currencies with them to ensure a big payoff and without exposure to exchange rate fluctuations.
Raise interest two percentage points .. And reducing compulsory reserve
And raise the Central Bank of Syria creditor interest rates by two percentage points and reduce the margin of movement by one percentage point came at the Prime Minister's Decree No. 5937 date 05.02.2011 containing the higher interest rates paid by the creditor banks operating on the deposits in order to / from 5 to 7 / percent / plus minus / 2 percent to 7 / 9 / percent / plus minus / 1 percent, or two percentage points and reduce the margin of movement by one percentage point, while maintaining the difference / / 2 percent between the lowest rate at the lowest to the highest rate on a longer in order to determine the bank on these deposits to raise interest rates on savings deposits by two percentage points to become the 7 / / percent plus minus 0.5 percent instead of / / 5 percent plus minus / 1 / percent and raise the ceiling on deposit savings of millions of Syrian pounds to two million Syrian pounds per applicant and treats in excess of this limit in the balance of deposit and savings accounts of ongoing treatment on the interest rates applicable.
Raising the interest rate on investment certificates by two percentage points to become the / / 7 percent instead of / / 5 percent.
And this amendment comes in interest rates to support the liquidity of the banking sector and the promotion of savings and increase the confidence of citizens in Syrian pounds, and to ensure that the value of their savings while creating a solid base of deposits to help in the process of financing for development and investment.
The decision also included also specify the interest rates payable paid by banks on deposits for the U.S. dollar and the euro in order to stimulate citizens who wish to keep their savings in foreign currency to the Syrian banking sector instead of turning to the outside were identified as interest rates attractive to both U.S. dollar and the euro and what can banks to attract foreign currency held by individuals as the text of the resolution to identify these benefits / / 2 percent to / / 3 percent on deposits for the U.S. dollar, where the rate of interest as possible, provided that at least the difference between the lowest rate at the lowest to the highest rate on longer in order to be determined Bank on these deposits for / / 1 percent to / / 2 percent on deposits for the euro where the rate of interest as possible between these two limits, provided that at least the difference between the lowest rate at the lowest to the highest rate on longer in order to be determined by the bank on the deposits of 2 percent .
What is worth noting in this context is that the Central Bank taking into account the interest rates on deposits in foreign currencies in neighboring countries so as to provide the Syrian market attractive opportunities for capital wishing to enter the other hand, has been taken into account to give an advantage to savings in Syrian pounds by keeping on the sidelines of substance between interest rates for the Syrian pound and those applicable to foreign currency deposits.
On the other hand, included a resolution to adjust interest rates paid by banks operating on certificates of deposit in Syrian pounds, as a step complementary to encourage savings long-term and support the liquidity of the banking sector and enhance its ability to give credit where it was determining interest rates, returns on certificates of deposit for one year / 10 / percent annually for a period of two years / 10.5 / percent per year for three years / / 11 percent a year.
Which will contribute to the resolution at the current stage in the creation of a state of stability and confidence in Syrian pounds, especially in light of the campaign media biased against Syria, and some are trying to raise from the intimidation of citizens in order to undermine confidence in the local currency and pushing them to withdraw their savings in Syrian pounds and increased their demand for foreign currencies or Aktnazha in the houses and this entails serious consequences in terms of exposing the owners of the theft or loss due to exchange rate fluctuations or to get involved in suspicious transactions, in case you try to remove them outside the country.
And supplemented him for the efforts made to ensure the stability of the financial sector, monetary and increase the ability of banks to cope with any movement draws possible and to reassure citizens on their ability at any time he wishes to withdraw the value of their savings and liquidated was the Central Bank of Syria issued a decision to reduce the reserve requirement on deposits held by banks at the Bank Central Bank of Syria to / / 5 percent of the total demand deposits and savings deposits and term deposits / excluding him and savings deposits residential / instead of / / 10 percent, with the possibility of reducing this rate to / zero / percent for the portion of deposits the bank-oriented financing investment projects and tourism and projects green and small and medium enterprises and micro loans for people with special needs.
The decision also re-consider how long the review is accordingly reserve requirements were reduced to one week instead of two weeks more than flexibility to banks and their ability to control Bassioltha and meet the demands of its customers.
Requiring banks and banking institutions to hand over remittances in Syrian pounds, or foreign currency
The Central Bank of Syria has issued Decision No. / 609 / l containing a date 04/28/2011 oblige banks allowed to deal in foreign currencies and exchange companies operating or not to accept the implementation of any transfer received from abroad, if drafted in Syrian pounds, or conditional on the delivery or mentioned in Syrian pounds worth Syrian pounds, though the editor in foreign currencies in addition to the inadmissibility of the bank or money exchange company in agreement with any third party on the Syrian pound exchange rate for the purposes of the implementation of the transfers incoming or outgoing calls.
Under this resolution, the banks and exchange companies are totally committed to the implementation of the remittances received by publication rates of exchange issued by the Central Bank of Syria and thus ensure that there is no manipulation in the exchange rate used to calculate the value of the assignment contained in Syrian pounds, as well as prevent any of the third parties from interfering with the mechanism for determining exchange rate which shall be done by the Central Bank of Syria, which ensures the implementation of orders to citizens at fair prices.
This gave the decision the right of the beneficiary of the transfer / consignee / receiving hawala in the original currency of the transfer or in any foreign currency other major or under this assignment in the account for banks to act out according to the currency regulations or the receipt of value directly in the absence of an account of the citizen with the bank, will also be allowing banks and exchange companies to buy foreign exchange mentioned in the assignment according to the bulletin issued by the exchange rate Central Bank of Syria, where this option due to the beneficiary of the transfer and not to the bank or banking company.
In continuation of this resolution have begun the central bank coordination with the Ministry of Communications and Technology and the General Postal Corporation to use the branches of that institution and deployed in all provinces to deliver the value of foreign remittances received in Syrian pounds for those wishing to do so in order to provide better services to citizens, particularly in remote areas where there are no branches of banks and exchange companies workforce.
It also should be noted that banks and exchange companies committed to fully publicize the contents of this resolution in the main center for banks and exchange companies and all its branches and the Central Bank of Syria is fully prepared to receive any complaint from our fellow citizens from abuses that may be exposed and thus deal with such cases immediately and the imposition of sanctions against violators.