Traders and bankers said that the Syrian pound fell to a new record yesterday, at a time when investors are rushing to obtain the dollar before imposing new US sanctions later this month.
In a rapid free fall, the lira recorded 3000 pounds against the dollar after it had previously broken an important psychological barrier at 2000 against the dollar on Thursday.
Dealers said that the most severe US sanctions expected later this month shook investors and businessmen as they feared it would exacerbate the economic crisis in the country.
Traders said that people were quick to raise dollars to protect their savings, while many businessmen stopped trading transactions pending an end to extreme price fluctuations.
Many investors are concerned that the additional sanctions, known as the "Caesar Act to Protect Civilians", will penalize foreign companies that deal with government-linked Syrian companies.
Investors fear that tougher sanctions against entities and individuals dealing with Syria will reduce the possibility of capital flowing from abroad.
Morale was also damaged by Syria's recent confiscation of assets, including hotels, banks, and the Syriatel mobile services company, owned by Rami Makhlouf, one of the wealthiest businessmen in Syria.
The lira was trading at 47 against the dollar before March 2011.