Unique-Syria retains 26 tons of gold reserves after Assad’s fall – sources

By Timour Azhari

DAMASCUS (Reuters) – The vault of Syria’s central financial institution holds practically 26 tons of gold, the identical quantity it had initially of its bloody civil struggle in 2011, even after the chaotic fall of Bashar al-Assad’s despotic regime, 4 folks accustomed to the scenario informed Reuters.

However the nation has solely a small quantity of overseas forex reserves in money, the identical folks stated.

Syria’s gold reserves stood at 25.8 tons in June 2011, in keeping with the World Gold Council, which cites the Central Financial institution of Syria as its knowledge supply. That’s price $2.2 billion at present market costs, in keeping with Reuters calculations.

The central financial institution’s overseas change reserves quantity, nonetheless, to simply round $200 million in money, one of many sources informed Reuters, whereas one other stated the U.S. greenback reserves have been “within the a whole lot of hundreds of thousands”.

Whereas not all reserves could be held in money, the drop is substantial in contrast with earlier than the struggle. On the finish of 2011, Syria’s central financial institution reported $14 billion in overseas reserves, in keeping with the Worldwide Financial Fund. In 2010, the IMF had estimated Syria’s overseas reserves to face at $18.5 billion.

The greenback reserves have been practically depleted as a result of the regime more and more used them to fund meals, gasoline and Assad’s struggle effort, present and former Syrian officers have informed Reuters.

Media representatives for Syria’s new ruling administration and for the Central Financial institution of Syria didn’t reply to Reuters requests for remark relating to the dimensions of the central financial institution’s reserves.

Syria stopped sharing monetary info with the IMF, the World Financial institution and different worldwide organisations quickly after the Assad regime put down pro-democracy protests in 2011 in a crackdown that spiralled into civil struggle.

Syria’s new authorities, led by former rebels, continues to be taking inventory of the nation’s property after Assad fled to Russia on Dec. 8. Looters briefly accessed elements of the central financial institution, taking Syrian kilos with them, however didn’t breach the principle vault, Reuters reported.

A few of what was stolen was then returned by Syria’s new rulers, Syrian officers informed Reuters.

The vault is bomb-proof and requires three keys, every held by a unique particular person, and a mixture code to be opened, stated one of many sources.

The vault was inspected by members of Syria’s new administration final week, two sources stated, days after the rebels took management of the Syrian capital Damascus in a lightning offensive that ended greater than 50 years of rule by the Assad household.

Led by the Hayat Tahrir al-Sham group, a former Al Qaeda affiliate that has long-since disavowed these ties, the brand new administration has rapidly arrange a authorities and is consolidating management of state establishments.

Reuters couldn’t entry the central financial institution vaults.

BACK AT WORK

The central financial institution’s headquarters, a broad white constructing in central Damascus, totally reopened on Sunday, the primary day of the working week in Syria.

It was teeming with workers in addition to folks seeking to entry {dollars}, whereas others have been finishing up sacks stuffed with Syrian kilos.

Apart from its meagre U.S. greenback reserves, the Syrian central financial institution can at the moment depend on a number of hundred million {dollars}’ price of Syrian kilos in its reserves, one supply stated.

New overseas forex inflows dwindled as a result of Syria misplaced its major supply of overseas earnings, crude oil, when Kurdish fighters and different armed teams seized the fields within the east of the nation throughout the course of the struggle.

Syria has additionally been focused by strict Western sanctions and the USA has sanctioned the central financial institution itself and blacklisted a number of of its governors.

However the sources accustomed to the scenario informed Reuters the gold was by no means liquidated in an effort to preserve ample collateral for the Syrian kilos circulating available in the market.

The Syrian native forex has depreciated from round 50 kilos per greenback earlier than the struggle to round 12,500 as of Monday.

Syria’s new administration has demanded the lifting of worldwide sanctions to revitalize the financial system, rebuild the nation from years of struggle and encourage hundreds of thousands of Syrian refugees to return.

However U.S. and European officers have stated they should wait and see what sort of administration the nation’s new Islamist rulers put in place.