Sources close to the Assad regime have confirmed the utilization of balance in certain commercial transactions. An economist estimated that a hundred pieces of 5,000 Syrian pounds, weighing 200 g each, equate to one million Syrian pounds weighing 400 g, and fifty million Syrian pounds weighing 20 kg. This phenomenon is a consequence of inflation and the challenge of managing large quantities of currency despite their low value.
Economist Shafiq Arbash highlighted the issue of procedural complexities and the lack of confidence in banks, along with the absence of mechanisms to facilitate the non-physical circulation of currency. He expressed concerns over the reliance on cash for significant purchases, citing risks to citizens’ safety and the burdens it imposes.
Arbash further illustrated that a typical shop selling electrical appliances could amass sales of at least 100 million Syrian pounds from just 10-15 customers, while a gas station might need to handle payments of 230 million Syrian pounds for a single gasoline tanker. This reliance on cash transactions not only strains banks but also delays and complicates everyday transactions for individuals.
Loyalist sources emphasized how the necessity of carrying large sums of cash has become a tangible burden in any transaction, making jokes about “Shawwal” (a Syrian slang term for carrying a large amount of money) no longer merely a joke but a stark reality hindering commerce.
In contrast, the government promotes electronic payments and mandates certain transactions through banking channels, seen as beneficial for the business sector but exacerbating the burden for average consumers. However, the stringent regulations and restrictions imposed by the Central Bank pose challenges to this transition.
Critics argue that while there’s talk of digital transformation, the lack of confidence, regulatory hurdles, and inadequate infrastructure impede its practical implementation. They assert that issuing larger cash denominations won’t address the underlying issues, especially amidst inflation.
There’s a call for a revamped monetary policy, urging the Central Bank to abandon its rigid stance on maintaining the Syrian pound’s exchange rate, which has proven ineffective as the currency continues to depreciate. Former Minister of Economy Lamia Assi attributes the current economic crisis to cumulative policy failures across various stages.
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.
