You are hereHome
Syria switches currency peg from dollar to SDR
Source: BI-ME and agencies , Author: BI-ME staff
Posted: Tue June 5, 2007 12:00 am

SYRIA. Syria will link the Pound to the International Monetary Fund''s special drawing rights (SDR) in July, abandoning its peg to the US Dollar, the central bank governor said.

"We will do it now in July," Governor of the Central of Syria Adeeb Mayaleh told reporters in Abu Dhabi. Mayaleh said in October that the change would take place in the first half of 2007, but "we needed some time so we slightly delayed it".

Effective from 1 January 2006, the IMF set weightings for the SDR, its unit of account, at 44% of the US Dollar, 34% Ruro, and 11% each of Yen and the British Pound Sterling.

"[The change] gives more stability to the Syrian Pound and it mitigates the risks of fluctuations of currencies like the Euro and US Dollar," Mayaleh said.

Asked about the weighting of the US Dollar in the Syrian currency reserves, he said: "There will be no change for the moment and we will keep it at 50:50 (US Dollar to Euro), but we might change it later on depending on any new development."

Syria has been reducing its US Dollar holdings since 2005, when reserves were entirely in US Dollars, Mayaleh has said. Syria was already pricing oil ــ a main revenue source ــ partly in Euros, he had said.

Central banks in the Middle East have been reducing their exposure to the dollar, which hit a record low against the euro in April.

Kuwait, the Middle East''s thirdـlargest oil producer, dropped its peg to the US dollar last month to combat imported inflation.

The United Arab Emirates aims to hold 10% of its reserves in Euros by the end of the third quarter of 2007, up from 3%, central bank governor Nasser AlـSuweidi said in January.

RELATED ARTICLES

Kuwait's new currency peg complicates plans for Gulf monetary union

Dollar peg barely affects inflation, says Saudi bank

Saudi Arabia has no plans to revalue currency

Dollar slides again with GCC currency revaluation now on the IMF agenda

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: December 19, 2014
UAE. As a gateway of opportunity for Asia, Dubai has a key role in driving growth momentum; Between 2010 and 2013, GCC-China trade grew faster than with any other significant trade partner.
date:Posted: December 18, 2014
INTERNATIONAL. A new analysis presents the key trends that will transform the global market over the next decade and beyond.
date:Posted: December 18, 2014
UAE. International tourism and a stronger middle class are shaping luxury trends, including luxury experiences and alternative luxury channels, with a focus on the consumer rather than geography.
dhgate