Syria has banned imports of most foreign manufactured goods except raw materials and grains, local businessmen said Saturday in a move to preserve foreign currency reserves under pressure from Western sanctions and ongoing political unrest. The government decreed Thursday that all imports that carry a tariff that exceeds five percent are banned, meaning that most foreign goods are affected, from electrical goods, to cars and luxury items, businessmen and traders in Damascus, who were contacted by Reuters said. The decision however excludes raw materials needed for the country's hard-hit industries, along with wheat and grain purchases by the state for local consumption. Traders said the import ban has already sent shock waves across the country's business community and was bound to add to inflationary pressures and further damage business confidence, already hit by the impact of social unrest. “There is no selling or buying, it's so bad now that traders and businessmen are neither selling in cash or credit. Prices of existing foreign imports will now soar,” said one car dealer in Damascus's Sabaa Bahrat commercial area, who preferred not to disclose his identity. “This move will only worsen the situation and add to the uncertainty,” said another businessman in the Halabouni district in the capital, adding there was a wait-and-see mood among investors and traders. “They are holding tight and not buying any goods and sitting and waiting but not panicking so far,” he added. Businessmen said that the economy faces currency pressures as a result of the protests and could deplete foreign reserves that had stood at around $18 billion earlier this year. But economists and bankers say reserves have been falling as the central bank pumps foreign currency to stop falls in the Syrian exchange rate on the black market. The official exchange rate stands at 47.4 pounds to the dollar. But dollars are changing hands on the black market at 51 pounds to the dollar and above.
