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Syria Finance
The Syrian
financial system has been run by the state since
nationalization in the 1960s. Syrian banking
functions have been designed to cater to the financial
requirements of the public sector. Because loans to the
private sector are relatively unknown, private businesses
must finance projects with cash or through external loans.
For those businesses involved in international trade,
offshore accounts have become very popular. The currency
of Syria is the pound which is pegged to the
U.S. dollar with a multi-tier exchange rate that remains
in effect.
The Central
Bank of Syria and the Commercial Bank
of Syria are the two of the five government-owned
banks that deal in hard currency. Foreigners are allowed
to open accounts with foreign currency in the Commercial
Bank of Syria. From these accounts, depositors are allowed
to re-transfer funds abroad, use the money to buy certain
imports, and sell the currency to a local bank.
In September 1996,
the government allowed Syrians to deposit foreign
currency at their banks without disclosing the
source of such currency. The new decision eliminates some
of the provisions in an old currency law that prevented
Syrians from dealing in hard currency.
Prime Minister Mahmoud Zu`bi,
who heads the export committee, approved the decision
that will also give Syrians interest and the freedom to
withdraw their deposits when they please. The new decree
allows hard currency to be transferred abroad provided
it is used for education expenses, payments of books,
medical treatment, newspaper subscriptions, and other
non-commercial transactions.
The Syrian government
has acknowledged the need for a reform of the financial
system and these new moves show that progress
is being made on this front. Some modernization efforts
have been initiated with the computerization of the Central
Bank and other commercial banks.The Syrian private sector
has been pressing the government for some initial reforms,
including the establishment of an investment bank and
a stock exchange.
For More Information About Syria's Economy go to the
Syrian Economy Website at http://www.syrecon.org.
Or contact the proper Ministry.
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