Syria Switches to Euro Amid Confrontation With US

February 21, 2006

S

Mon, 20 Feb 2006 15:58:26 -0800

Syria Switches To Euro

By Reuters

DAMASCUS (Reuters) - Syria has switched all of the state's foreign

currency transactions to euros from dollars amid a political

confrontation with the United States, the head of state-owned

Commercial Bank of Syria said on Monday.

" This is a precaution. We are talking about billions of dollars, "

Duraid Durgham told Reuters.

The bank, which still dominates the Syrian market although private

banks have been allowed to set up in the last few years, has also

stopped dealing with dollars in the international foreign exchange

flows of private clients.

The United States has been at the forefront of international pressure

on Syria for its alleged role in the assassination of former Lebanese

Prime Minister Rafik al-Hariri a year ago. Damascus denies involvement

in the killing.

" It looks like a kind of pre-emptive action aimed at making their

foreign assets safer, preventing them from getting frozen in case of

any conflict, " said a Middle East economist who requested anonymity.

Recommended Posts