The Syrian pound is seeing a continuous decline in its value; last week it reached 13,700 pounds for every dollar. At the start of the conflict in 2011, the dollar was trading at 47 pounds. To avoid losses resulting from the decline of the Syrian pound, southern Daraa governorate growers have recorded their deferred debts to traders resulting from selling crops before they were harvested in US dollars.
Sales operations lack any legal mechanism that protects farmers from fraudulent operations, which prompted some of them to conclude contracts and fix the price in foreign currencies. It is customary in Daraa to sell fruitful crops to the merchant immediately before the harvest date as part of what is known as the ‘land guarantee’. This is an agreement between the merchant and the farmer to sell the crop for a price determined by both parties in Syrian pounds, with the merchant paying the amount in instalments that may extend for a period of time of up to three months. This prompted farmers this season to fix the amount in dollars.
Source: english.enabbaladi.net
