Local markets in Syria are witnessing a permanent rise in prices, which cannot be labeled as price fluctuations because the term “volatility” includes ups and downs, which is completely contrary to what is happening on the ground, a pro-regime economist told the government Tishreen newspaper.
Professor Maan Dayoob criticized the policies pursued by the government, describing them as “administrative coercion”, noting that it cannot bear fruit because it leads to more evasion and more revival of the black market in Syria, which pushes prices further up.
He added that the best policies to support the local economy should be through self-reliance, removing the national product from the circle of weakness, and reducing dependence on imports, which would enhance the value of the lira.
This is reflected positively on prices and gradually leads to their decline, indicating that most locally manufactured products depend on imports, especially with regard to their raw materials: as he described.
Encouraging local and foreign investments and providing facilities to enhance them in all investment fields mainly contribute to supporting the value of the lira.
Also, banks deposits and raising the interest rate as a banking policy has its advantages in the sense of raising the interest rate by the amount of price hike, which encourages putting savings in banks, the expert concluded.
The regime-controlled areas suffer from a stark rise in the prices of basic materials and food commodities, amid government promises to fight monopoly.
The Syrian economy has been devastated by war and witnessed massive destruction of infrastructure worth USD 120 billion.
The Syrian revolution that turned into a bloody conflict has claimed 500,000 lives and has displaced 13,2 million people since it erupted in March 2011 with the brutal repression of anti-regime protests.
($1=3900 SYP) in Syrian trading market
This article was 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.