The Syrian pound experienced a significant upswing against the US dollar on Thursday, reaching 9900 SYP per USD—a level unseen since 2023, according to the “Lira Today” economic website. This appreciation follows a period of volatility for the Syrian currency since the Assad regime’s downfall. Prior to the regime’s collapse, the exchange rate had soared past 15,000 SYP per USD before gradually recovering and stabilizing around 11,000 SYP per USD.
The dollar’s exchange rate dropped by a notable 9% on the parallel market Thursday. This decline wasn’t driven by increased exports or decreased imports but rather by a surplus of dollars in circulation, resulting from several contributing factors.
What Explains the Syrian Pound’s Sudden Surge?
Economist George Khazzam suggests several factors may explain the dollar’s decline. He points to President al-Sharaa’s recent address, which emphasized impending political and economic stability, as a key confidence booster. This perceived stability has encouraged individuals to hold Syrian pounds rather than dollars, thus reducing demand for the US currency.
In a Facebook post, Khazzam also highlighted expectations of incoming Arab investments, financial aid, or even multi-billion dollar deposits into the Central Bank to bolster the pound. These anticipations have increased the dollar supply, further driving down its value.
Furthermore, the stagnant Syrian economy, marked by declining production and widespread layoffs, has significantly reduced incomes. Consequently, consumer spending has decreased, along with the demand for dollars used to import raw materials and finished goods, further contributing to the dollar’s depreciation.
Will the Pound’s Gains Hold?
Khazzam cautions that the pound’s continued strength hinges on whether the anticipated Central Bank deposits and multi-billion dollar investments materialize. If these expectations are unmet, the dollar is likely to rebound, potentially exceeding its previous decline.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
