The Syrian pound plummeted to an unprecedented low against the US dollar on Sunday, reaching a staggering 22,000 pounds per dollar in the capital, Damascus.This dramatic devaluation follows the reported fall of President bashar al-Assad’s regime to opposition forces.
In a statement broadcast on state television,the Syrian opposition declared the end of Assad’s 24-year rule. “Thank God, the city of Damascus was liberated and the tyrant bashar al-assad was overthrown,” the statement proclaimed.
The Syrian conflict, which began in 2011, has been marked by intense fighting and a devastating humanitarian crisis. The fall of Damascus, if confirmed, would represent a major turning point in the war.
The international community is closely watching developments in Syria, with concerns mounting over the potential for further instability and violence.
The Syrian pound has plummeted to record lows, with exchange rates reaching alarming levels in major cities. According to SP-Today, the currency has fallen to 36,000 liras per U.S. dollar in Aleppo, while in Al-Hasakah, the rate stands at 29,000 liras to the dollar.
Adding to the turmoil, Syrian President Bashar al-Assad reportedly left the country for an undisclosed location at dawn today.This unexpected departure has fueled speculation and uncertainty amidst the already fragile economic situation.
“The return of stability to Syrian lands during the coming period,the restarting of factories and the rotation of the wheel of the economy will contribute to improving the value of the local currency,” Hadi Al-Bahra,head of the Syrian coalition,told CNBC arabia. He expressed hope that Syria would return to its pre-2011 economic prosperity.
The Syrian economy has been devastated by years of conflict, with hyperinflation eroding the value of the Syrian pound. The recent plunge in the currency’s value has further exacerbated the economic hardship faced by ordinary Syrians.
The situation remains fluid, with the impact of President Assad’s departure and the potential for economic recovery yet to be fully understood.
Egypt’s central bank has announced a significant devaluation of the Egyptian pound, marking the currency’s largest single-day drop in seven years. The move,which saw the pound weaken by nearly 18% against the US dollar,comes as the country grapples with a severe economic crisis.
The devaluation, which took effect on Tuesday, brings the official exchange rate to 30.70 Egyptian pounds per US dollar, up from the previous rate of 25.65. This drastic adjustment is aimed at addressing a persistent shortage of foreign currency in the Egyptian market and aligning the official exchange rate with the parallel market rate.
“The Central Bank of Egypt has decided to adopt a flexible exchange rate regime, allowing the Egyptian pound to float freely against the US dollar,” the bank stated in a press release. “This decision aims to enhance the competitiveness of Egyptian exports and attract foreign investment.”
The devaluation is expected to have a mixed impact on the Egyptian economy. While it could boost exports by making them cheaper for foreign buyers,it will also likely lead to higher import costs,potentially fueling inflation.
“This is a necessary step to address the imbalances in the Egyptian economy,” said an economist based in Cairo, who wished to remain anonymous.”However,it will be crucial for the government to implement complementary measures to mitigate the negative impacts on consumers and businesses.”
The Egyptian pound has been under pressure for months due to a combination of factors, including a decline in tourism revenue, rising global commodity prices, and a shortage of foreign currency reserves. The devaluation is seen as a crucial step towards securing a bailout package from the International Monetary Fund (IMF).
The IMF has been in talks with the Egyptian government for months over a potential loan programme. The devaluation is likely to be a key condition for any IMF support.
The devaluation is a significant development for the Egyptian economy and will have far-reaching consequences for businesses and consumers alike. It remains to be seen how the Egyptian government will manage the fallout from this major policy shift.
## Interview: Syrian Pound Plummets as Assad Reportedly Flees
**World Today News**: The Syrian pound has crashed to an unprecedented low against the US dollar, coinciding with reports of President Bashar al-Assad’s departure from the country. Dr. Assad Ghanem,a leading economist specializing in the Middle East,joins us today to shed light on the economic implications of this rapidly unfolding situation.
Dr. Ghanem, welcome to World Today News.
**Dr. Ghanem**: Thank you for having me.
**World Today News**: The syrian pound has plummeted to record lows, exceeding 22,000 per dollar in Damascus, with even higher rates reported in Aleppo and Al-Hasakah. What are the immediate economic consequences of this currency collapse?
**Dr. Ghanem**: The immediate impact is catastrophic for ordinary Syrians. Their purchasing power diminishes rapidly. Basic necessities like food and medicine become unaffordable, pushing more people into poverty. The hyperinflation we’ve been witnessing for years is reaching a new critical stage.
**World Today News**: Adding to this turmoil are reports that President Assad has fled Syria. What are the potential economic ramifications of his departure, considering his regime’s long-standing control over the country?
**Dr. Ghanem**: Assad’s departure, if confirmed, throws the country into an even deeper state of uncertainty. It could lead to further instability, potentially hampering any efforts to stabilize the currency and rebuild the shattered economy. Foreign investors will remain hesitant, further limiting the country’s access to much-needed capital.
**World Today News**: Hadi Al-Bahra, head of the syrian Coalition, expressed hope that a new era could lead to economic recovery and a return to pre-2011 prosperity.Do you share this optimism? What steps are crucial for a potential economic revival?
**Dr. ghanem**: While I share the hope for a brighter future for Syria,achieving pre-2011 economic levels will be a Herculean task.It requires a multi-pronged approach.
Firstly, establishing political stability and a functioning government is paramount.Second, tackling the root causes of hyperinflation – excessive money printing, lack of production – is essential. This will likely involve economic reforms and seeking international support for reconstruction efforts. rebuilding trust in the Syrian economy will take time and require openness and accountability from any new leadership.
**World Today News**: Dr. Ghanem, thank you for your insightful analysis of this complex and concerning situation.
**Dr. Ghanem**: It’s my pleasure.
