DAMASCUS, Syria, Feb. 13 (UPI) -- Syria surprised world financial markets when it announced Monday that it would stop dealing in U.S. dollars, replacing them with the euro in all official institutions.
"All the ministries and public companies must from now on adopt the euro instead of the dollar for paying back sums owed by state institutions to foreign parties," said a statement endorsed by Prime Minister Mohammed Naji Otri, printed in the Syrian Ath-Thawra daily.
The announcement is one of the first policy changes by Otri, coming just after President Bashar Assad reshuffled his Cabinet Sunday.
Elaph, a London-based Arabic language e-newspaper, called the change "an unexpected move."
"Dr. Dureid Dergham, chairman of the Commercial Bank of Syria said that this procedure was crucial and necessary in light of the American threats on Syria," according to Elaph.
Syrian governmental sources said this decision is an attempt "to keep the Syrian economy away from the mercy of the American dollar, especially since American laws stipulate that any conversion into dollars must go through the American banking system."
Pressure has tightened on Damascus following U.S. accusations that it was behind the murder of former Lebananse premier Rafiq Hariri and was aiding the insurgency in Iraq, charges Syria rejects.
