Forex or foreign exchange is the largest financial market in the world, with trillions of dollars traded daily. It involves buying and selling currencies from around the world. One of the currencies that traders may come across in forex is the Syrian pound (SYP). Syria is a country located in the Middle East, bordered by Turkey, Lebanon, Israel, Jordan, and Iraq. The Syrian pound is the official currency of Syria and is abbreviated as SYP.
The Syrian pound has been in circulation since 1919 and has undergone several changes over the years. In 1948, the pound was pegged to the French franc at a fixed exchange rate of 1 SYP to 20 French francs. After gaining independence in 1946, Syria continued to use the French franc as its currency until it introduced its own currency in 1955. The exchange rate was set at 1 SYP to 2.19148 French francs.
In 1971, the Syrian pound was pegged to the US dollar at a fixed exchange rate of 1 SYP to 2.19148 USD. This peg lasted until 1986 when the value of the pound was allowed to float freely against the dollar. However, in 1992, the Syrian government reinstated the peg at a rate of 1 SYP to 11.25 USD. The peg was maintained until 2012 when the Syrian pound was allowed to float freely again.
The Syrian pound has had a tumultuous history, with several factors affecting its value. One of the main factors affecting the value of the Syrian pound is the ongoing civil war in the country. The conflict, which began in 2011, has had a devastating impact on the Syrian economy. The war has led to a decline in oil exports, which were a major source of revenue for the country. It has also led to a decrease in foreign investment and tourism, which has further weakened the economy.
As a result of the conflict, the value of the Syrian pound has declined significantly. In 2011, the exchange rate was around 47 SYP to 1 USD. By 2019, the exchange rate had dropped to over 500 SYP to 1 USD. The decline in the value of the pound has led to hyperinflation, with prices of goods and services skyrocketing.
Traders who want to trade the Syrian pound in forex need to be aware of the risks involved. The Syrian pound is a highly volatile currency, with its value being affected by a range of economic, political, and social factors. Traders need to keep up to date with the latest news and events in Syria to make informed trading decisions.
In conclusion, the Syrian pound is a currency that traders may come across in forex. However, due to the ongoing conflict in Syria, the currency is highly volatile and carries significant risks. Traders need to be aware of the risks involved and keep up to date with the latest news and events in Syria to make informed trading decisions.
