Why the Syrian Pound is Strengthening Against the Dollar

Economic journalist Samir Tawil describes to Sadaa al-Sham three factors that have contributed to a recent strengthening of the Syrian pound since last week

The value of the dollar has declined to under 500 Syrian pounds in some areas of the country, after sitting at 536 pounds last week, following a period of stability for about two months.

The dollar value in Damascus declined from 537 pounds to 500 pounds, while it declined in the town of Afrin from 538 pounds to 499 pounds. Its price in Hama meanwhile reached 501 pounds after it had been around 537 pounds.

Samir Tawil, an economic journalist, told Sadaa al-Sham that this slight improvement in the pound against the dollar was the result of three factors. He said that the first factor was the gains on the field made by the Assad regime forces in Aleppo province, while the second factor was psychological stability among Syrians who saw the exchange rate stabilize in Syria.

The third factor was in the “rationalization of imports” policy which the Assad regime had begun pursuing over the last two months through stopping the import of items that were unnecessary or redundant.

However, Tawil said that this slight improvement in the pound would not cancel out the inflation which is rising each day and which leads to a decrease in purchasing power. He said that the inflation rate had increased greatly in the western districts of Aleppo, especially after the increase of the price of foodstuffs because of the wave of displaced people from the eastern districts of the city.

The Assad regime’s central bank has regularly intervened in the foreign exchange market and imposed regulations on private exchange companies with the aim of raising the price of the Syrian pound, which has fallen by 12 times its regular value because of the high cost of the military machine over the last six years.

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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