An estimated $3 billion in losses have been incurred by Syrian citizens as a result of the collapse of the Turkish lira, according to Al-Sharq Al-Awsat daily.
A senior source at the Aleppo Chamber of Commerce and Industry stated that those affected by the lira plunge were Syrian merchants who deposited their savings in Turkish banks. Reportedly, the majority of citizens who kept funds in Turkish banks were from Aleppo and northern Syria.
A growing number of Syrians chose to deposit their savings in Turkish banks since they offer a significantly higher interest rate of 20 to 25 percent on customer deposits.
However, the recent 30 percent drop in the Turkish exchange rate proved disastrous for these depositors. In addition, the collapse of the currency also severely affected Syrian exports to Turkey.
Syria, which deems trade with its Turkish neighbor important, decided to amend its Banking Law, allowing Turkish bank branches to operate in Syria.
In addition, Syria’s Border Access Law was also modified, as well as two free trade zones were established with Turkey in an attempt to further such cooperation. –(Mena Report)
© 2001 Mena Report (www.menareport.com)
