Syria Central Bank Floats New 5,000 Lira Banknote Amid Soaring Inflation

The new 5,000 Lira banknote issued in Syria
The new 5,000 Lira banknote issued in Syria
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Syria Central Bank Floats New 5,000 Lira Banknote Amid Soaring Inflation

The new 5,000 Lira banknote issued in Syria
The new 5,000 Lira banknote issued in Syria

The Central Bank of Syria (CBS) on Sunday issued a new banknote for a denomination of 5,000 Liras, the largest to date, amid the worst economic and living crisis facing the country since the start of the conflict nearly 10 years ago.

Announcing the new bill on its official Facebook page, CBS revealed that it started printing the newly-designed banknote some two years ago and that it bears on one side a photo of a soldier saluting the Syrian flag along with a fresco from the Baal Shemin Temple in the ancient city of Palmyra.

This is the third time that CBS issues new banknotes to confront inflation within the last five years. According to international economic reports, the inflation rate in Syria reached 263.64% in 2020.

Syria’s currency has been on a downward spiral since the conflict began in 2011. Trading that year at 48 liras to the dollar, it’s now officially up to trading at 1,256 liras to the dollar. On the black market, the dollar is trading at nearly double the official value.

The currency crash has sent prices of food and basic goods soaring.

The economic hardship has been made worse by the pandemic restrictions, increased Western sanctions on the Syrian government and its allies for their role in the war, and years of corruption and mismanagement

The World Food Programme (WFP) has recorded a 249% hike in the price of basic foods and warned that 9.3 million Syrians are living in food insecurity, with more than 2 million more at risk.

It is worth noting that the new banknote released by CBS is worth about four dollars at the official rate.

CBS said that the new banknote was issued "to meet the need of the market, facilitate cash transactions and reduce their costs."

In other news, banknotes denominating 50, 100, 200 Liras have been put out of circulation due to their staggeringly diminished value.

Several years ago, CBS printed new 50, 100, 200, 500, and 1000 Liras banknotes and put them into circulation. Notes were printed in 2015 and put into circulation in the second half of 2017.



Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices were little changed on Wednesday as traders remained cautious ahead of US tariffs due to be announced at 2000 GMT, fearing they could exacerbate a global trade war and dampen demand for crude.

Brent futures were down 7 cents, or 0.09%, at $74.42 a barrel by 0858 GMT. US West Texas Intermediate crude futures fell 5 cents, or 0.07%, to $71.15.

The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no detail on the size and scope of the trade barriers, according to Reuters.

Trump's tariff policies could stoke inflation, slow economic growth and escalate trade disputes.

"Crude prices have paused last month's rally, with Brent finding some resistance above $75, with the focus for now turning from a sanctions-led reduction in supply to Trump's tariff announcement and its potential negative impact on growth and demand," said Ole Hansen, head of commodity strategy at Saxo Bank.

Traders will be watching for levies on crude imports, potentially driving up prices of refined products, he added.

For weeks Trump has touted April 2 as "Liberation Day", bringing new duties that could rattle the global trade system.

The White House announcement is scheduled for 4 p.m. ET (2000 GMT).

"The balance of risk lies to the downside, given that weaker than expected tariff measures are unlikely to drive a significant rally in Brent, while stronger than expected measures could trigger a substantial selloff," BMI analysts said in a note.

Trump has also threatened to impose secondary tariffs on Russian oil and on Monday he ramped up sanctions on Iran as part of his administration's "maximum pressure" campaign to cut its exports.

"Markets likely to be volatile ahead of the final announcements on tariffs and the scale of them. The threat of secondary tariffs on Russian crude continues to provide some support for prices, with more downside risk at present around tariff uncertainty," said Panmure Liberum analyst Ashley Kelty.

US oil and fuel inventories painted a mixed picture of supply and demand in the world's biggest producer and consumer.

US crude oil inventories rose by 6 million barrels in the week ended March 28, according to sources citing the American Petroleum Institute. Gasoline inventories, however, fell by 1.6 million barrels and distillate stocks were down by 11,000 barrels, the sources said.

Official US crude oil inventory data from the Energy Information Administration is due later on Wednesday.