Researchers analysed hundreds of UN contracts to procure goods and services for people living in government-held areas of Syria, where more than 90% of the population are living in poverty since the Syrian pound, or lira, crashed last year.
While the central bank’s official exchange rate is now SYP2,500 to the US dollar, the black market rate is SYP3,500. Legitimate traders and consumers prefer to use the black market rate, as they receive more Syrian pounds for foreign currency.
Since the UN is forced by the Syrian government to use the official rate, half of foreign aid money exchanged into Syrian pounds in 2020 was lost after being exchanged at the lower, official rate.
Er, no. In normal FX market parlance that’s a higher rate. Fewer lbs per $ is a higher rate for the lb.