DAMASCUS, Feb. 13 (Xinhuanet) -- All Syrian state institutions are ordered to use the euro instead of the U.S. dollar in all transactions as fears rise of more sanctions imposed by the United States, the official al-Thawra newspaper reported on Monday.

    "All government ministries and state-run companies are required to use the euro instead of the dollar to pay foreign companies," said a statement endorsed by Prime Minister Mohammad Naji Ottri." The euro will also be used in import-export contracts instead of the dollar," it added.

    Meanwhile, Doreid Dargham, head of Syria's state-owned Syrian Commercial Bank, was quoted as saying that the decision was a "preventative" measure and was made when the U.S. was threatening the country with more sanctions.

    Damascus is facing mounting international pressure as the United States and other western countries accused it of being involved in the killing of Lebanese ex-premier Rafik Hariri in a massive bombing last February, which Damascus vigorously denied. The U.N. Security Council adopted Resolution 1636 last year, demanding full Syrian cooperation in the probe of Hariri's killing or it will face unspecified further action.

    Syria has been under U.S. sanctions since 2004 as Washington bans export of American products to Syria other than food and medication. Enditem