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Syrian Traders Complain About the Increasing Dollar

As the US dollar continues its upward trend, traders in Syria are finding it difficult to ensure that their businesses remain profitable reports Al-Iqtissadi.
Syrian Traders Complain About the Increasing Dollar

Syrian traders say that the price of the dollar against the Syrian pound in the parallel market has seen an increase in recent days, and the consequences of that have begun to appear in the prices of some goods in the stores, with selling and buying nearly paralyzed.

One trader of electrical supplies in Damascus told Al-Iqtissadi that the current situation was extremely bad. The surprise increase in the dollar and intimidation by the new American sanctions against the Assad regime, as well as the ban on importing some items, had led to a major decline in sales, and caution among traders.

He said that this situation had led some to stop importing and selling as a result of the lack of stability in the dollar price compared with the Syrian pound. Despite the constantly rising prices of the dollar, it is still unstable, and on this basis the real sale price that will achieve profits cannot be determined, which are compounded by fears of a continuing increase.

The price of a gram of gold over the last week rose 1,000 pounds from 18,000 to 19,000 according to a post on Tuesday. According to goldsmiths, there has been almost no buying and selling as a result of the fear that the rise will continue and therefore there will be an inability to compensate for what has been sold at the same amount.

The head of the Damascus Chamber of Commerce in the regime government, Ghassan al-Qalaa, has previously explained that traders are increasing the price of goods with the increasing dollar exchange rate because their capital is not only money but also includes goods.

He said that traders had a group of goods and the prices had risen, and so the former prices could not be maintained given that the trader has to make up for the quantity of goods he has.

He said that for example, if a trader has 100 goods in storage, and sold them at the old price, not accounting for for the increases, he would only be able to restock 90 percent of what had been sold, making a loss of 10 percent.

The price of the dollar was stable in the parallel market last year until November, with the price being 450 pounds to the dollar. It then saw a surprise rise to about 500 pounds without the reasons for this being clear.


This article was translated and edited by The Syrian Observer. Responsibility for the information and views set out in this article lies entirely with the author.

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