Logo Wide

Assad Uses Last Remaining Gold Reserves

The use of gold reserves is a sign the economy is failing
Assad Uses Last Remaining Gold Reserves


The Syrian regime finally released the Syrian Gold Lira on the market last week. This was a significant step. Consuming Syrian gold reserves (about 25.8 tons, or 3.5 million Gold Liras) is considered a necessary step for a government that has wasted the property of the Syrian people and the foreign exchange reserves of about $18 billion.


The move can be viewed as part of attempts to prevent Syrians from using foreign currency, especially after the forced closure of many foreign exchange companies and the arrest of their managers.


We can also read the step as a sign of diminishing resources and a sign that, after the regime's failing performance at the Geneva negotiations, its allies have become convinced  of the inevitability of its fall.


The head of Goldsmiths Society in Damascus, Ghassan Jazmati, expressed his optimism when he said he expected the new Gold Lira will compete with other gold liras available in the Syrian market.


The Gold Lira is made of pure, 21 carat gold and weighs 8 grams. The Damascus Citadel is depicted on the front and the Aleppo Citadel is depicted on the back.


Gold prices in Syria have broken all previous records during the last two years, with the price reaching 10,000 Syrian Pounds. The price has now reached 5,108 SP, or $3,602.


The economy has already collapsed; there is no industry, no tourism, no export and no oil in Syria. Yet the regime continues to try to bypass the fiscal reality through loans. It is a sign of death. After exhausting the monetary and gold reserves and renting oil wells, how could Assad possibly revive the Syrian economy?


Helpful keywords