Syrian Pound Collapsing: Inflation Hits All-Time High

How much is the exchange rate? Syrian currency Against the dollar yesterday, Monday, it reached 15 thousand liras against the dollar, while the exchange rate of the euro rose to 16 thousand liras, with gold recording the highest price ever after the price of a gram of 21-carat gold will exceed a million liras. As a result of these developments, Prices of goods And consumer products, between 20 and 40% during this year, according to sources from the Syrian capital, Damascus.

In the first publication on inflation within Syria, economic researcher Ihab Ismandar reveals how inflation is worsening in the period from 2015 to 2023, indicating that the year saw 2021 the highest rate of inflation at 119%, while the average increase in the year The rate of inflation is around 40%, which is one of the highest rates in the Arab region.

The Syrian researcher, in a statement made by the newspaper of the ruling party, Al-Baath yesterday, said that the prices of hotel and restaurant services rose by 30% recently, while ‘ in which tobacco and alcoholic beverages rose to 12%, and food and non-alcoholic beverages. – Alcoholic drinks rose to 11%, and the health price index rose significantly up to three times more due to the decision to increase drug prices (70-110%).
The researcher from Damascus points out that the Syrian pound loses about 59% of its value on average every year, because the monetary policy he followed could not control the decline of the lira, without to underestimate the impact of other factors that play a role in the value of the lira, such as the currency reserve, the deficit in the balance of payments, and financial policy and other factors.

In this context, the Syrian economist, Ali Al-Shami (pseudonym), says that the anxiety around the Syrian market is the most important reason for the decline in the exchange rate of the lira to 15 thousand liras against the dollar, considering that. Metals and foreign currencies are the only refuge to escape from “confusion and an unknown future.” After the regime of President Bashar al-Assad confirmed the change in the identity of the Syrian economy and the transition to a social market economy, which means new decisions at the same time as the change of government to is expected in July after the People’s Assembly elections next June.
Al-Shami told Al-Araby Al-Jadeed that the inability of the Assad government to solve the problem of the lack of fuel, which “significantly” affected transport and increased the queues in front of the bakery, has increased the fear of the Syrians, appears. out that “rumors” about the privatization of some government sectors (tobacco, industry, and electricity) ) according to the new approach, increase turbulence in the markets already suffering from price chaos and censorship.
The Ministry of Internal Trade and Consumer Protection in the Assad government had increased the price of a liter of 90 octane gasoline from 12,000 Syrian pounds to 12,500 Syrian pounds, and the price of a 10-kg domestic gas cylinder from 75,000 Syrian pounds to 100,000 Syrian pounds. .

Syria has been suffering from the crisis of oil derivatives for about two weeks, which caused the delay in filling letters for private cars for 14 days according to the electronic card system that allows 25 liters for each filling only.
The suffering of the Syrians increased and the increase in prices after the shipment of oil from Iran stopped last month and the growing features of the dispute between Tehran and the Assad regime, over a debt estimated at around on 50 billion dollars.
Syrian economic expert Imad al-Din al-Musabah pointed out to Al-Arabi Al-Jadeed that Syria today is “in a process of uncertain transformation,” whether at the internal level, after the president announced the change in the economic regime. approach, which means changing many economic laws, or at the regional and international level, After Damascus accepted Arab conditions and invited Assad to the top of Bahrain this month. However, Al-Musabeh points out that “confusion and patchwork” is the main factor in a broken economy that is on the verge of collapse.