Syria Devalues Local Currency after Sacking Central Bank Governor

Syrian pounds are stacked inside an exchange currency shop in Azaz, Syria, Feb. 3, 2020. Reuters file photo
Syrian pounds are stacked inside an exchange currency shop in Azaz, Syria, Feb. 3, 2020. Reuters file photo
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Syria Devalues Local Currency after Sacking Central Bank Governor

Syrian pounds are stacked inside an exchange currency shop in Azaz, Syria, Feb. 3, 2020. Reuters file photo
Syrian pounds are stacked inside an exchange currency shop in Azaz, Syria, Feb. 3, 2020. Reuters file photo

Syria devalued the pound on Thursday, bringing the currency's official exchange rate closer to the black market rate, two days after the central bank governor was sacked.

The pound was now officially valued at 2,512 to the US dollar from around 1,250 previously, central bank data showed. The black market rate is more than 3,000 to the greenback.

The move means the Syrian currency has officially shed more than 98 percent of its value since the start of the country's civil war in 2011.

It follows the government's decision to dismiss central bank governor Hazem Karfoul on Tuesday after a three-year tenure that coincided with a severe economic crisis.

The pound stood at 47 pounds to the dollar before the conflict.

Syria last devalued the pound in June 2020, giving in to weeks of depreciation on the black market as new US sanctions took effect.

The country's war-battered economy is now reeling from the knock-on effects of a financial crisis in neighboring Lebanon that has stemmed the flow of dollars into regime-held areas.

Syrians are believed to have billions of dollars blocked in Lebanese banks that have imposed harsh capital controls since late 2019.

The regime of Bashar al-Assad also blames Western sanctions against Syria for the economic crisis.

The average salary in Syria is about 90,000 pounds ($29) per month making it difficult for many Syrians to survive.

The economic crunch has plunged millions into food insecurity nationwide, as food has over the years become 33 times more expensive than before the war, UN figures show.



Israel's Leviathan Gas Field to Resume Operations

FILE PHOTO: An Israeli military ship sails next to the production platform of Leviathan natural gas field in the Mediterranean Sea, off the coast of Haifa, northern Israel December 1, 2020. REUTERS/Ilan Rosenberg/File Photo
FILE PHOTO: An Israeli military ship sails next to the production platform of Leviathan natural gas field in the Mediterranean Sea, off the coast of Haifa, northern Israel December 1, 2020. REUTERS/Ilan Rosenberg/File Photo
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Israel's Leviathan Gas Field to Resume Operations

FILE PHOTO: An Israeli military ship sails next to the production platform of Leviathan natural gas field in the Mediterranean Sea, off the coast of Haifa, northern Israel December 1, 2020. REUTERS/Ilan Rosenberg/File Photo
FILE PHOTO: An Israeli military ship sails next to the production platform of Leviathan natural gas field in the Mediterranean Sea, off the coast of Haifa, northern Israel December 1, 2020. REUTERS/Ilan Rosenberg/File Photo

Israel's NewMed said on Wednesday the Leviathan natural gas field that supplies gas to Egypt and Jordan, shut down nearly two weeks ago due to the Iran-Israel conflict, would resume operations in the next few hours.

Two of Israel's three gas fields - Chevron-operated Leviathan and Energean's Karish - off its Mediterranean coast that provide the bulk of exports to Egypt and Jordan have been shut since June 13.

That left in operation only the older Tamar field, used mainly for domestic supplies.

Israel and Iran agreed to a ceasefire on Tuesday. Israel's Energy Ministry said that after a security assessment, Energy Minister Eli Cohen had ordered the opening of Leviathan and Karish, Reuters reported.

The ministry said resuming regular operations at the rigs will "enable the supply of natural gas to all customers", the resumption of gas exports to neighboring countries, a rise in state tax revenues, and greater flexibility in managing the electricity and industrial sectors.

Leviathan, a deep-sea field with huge deposits, came online at the end of 2019 and produces 12 billion cubic meters of gas per year for sale to Israel, Egypt and Jordan. That will rise to some 14 bcm in 2026.

In addition to Chevron and NewMed, Ratio Energies is also a partner in Leviathan.