The Syrian pound is experiencing severe fluctuations, causing instability in basic goods prices amid a passive Central Bank. Prices for staples like bread have risen sharply, reflecting a significant divergence between official and black market exchange rates. Experts criticize the current monetary policies as unclear and ineffective, leading to speculation that further harms ordinary citizens. Immediate economic reforms are essential for restoring the currency’s value and market stability.
Syrian markets are witnessing severe instability in basic goods pricing, primarily due to fluctuating black market exchange rates for the Syrian pound, amid a passive stance from the Central Bank of Syria. Prices of staple items like bread have sharply increased, evidenced by a decrease in loaf weight from 1,500 grams to 1,150 grams, with black market prices climbing from SYP 3,000 to SYP 4,000 since the regime’s fall on December 8, 2024.
Following the regime change, the Central Bank attempted to align the official exchange rate with the black market rate. Despite official rates being set around SYP 13,200 to the dollar, the black market has diverged significantly, affecting market stability and creating confusion among consumers and producers. This disparity between official and black market rates continues to disrupt economic activities.
Former Economy Minister Lamia Assi highlights the central bank’s strategies as ineffective, asserting that the unclear monetary policies exacerbated issues instead of improving market conditions. Economic researcher Refaat Amer notes that the lack of government intervention during exchange rate fluctuations harms both producers and consumers while benefiting speculators.
The trading of currency is influenced by speculation rather than firm economic indicators, with many Syrians relying on remittances that have significantly devalued due to fluctuation in exchange rates. The swift changes in the black market lead to increased losses for Syrian households relying on these funds for survival and daily expenses.
Merchants are adjusting prices based on the dollar rather than the pound to mitigate losses amid fluctuating rates, which leads to further confusion for consumers. Business owners report rising operational costs that impact pricing, showing a direct correlation between currency value and product pricing across sectors.
Despite the Syrian pound showing temporary improvements, economic experts like Amer and Assi argue that these changes are largely superficial, driven by speculation rather than genuine economic progress. They stress that tangible improvements in exports, investments, and broader economic indicators are necessary for sustainable currency value recovery.
For the pound’s exchange rate to stabilize, experts suggest a flexible rate dependent on actual market dynamics, devoid of central bank interference, along with necessary liquidity in the market to facilitate transactions. Public morale and trust in the currency can be improved by instituting clear and effective monetary policies.
Moving forward, experts predict that without substantial economic recovery and improved international relations, the Syrian pound is likely to depreciate further against the dollar. Strategies such as consulting with economic experts for better monetary management and revising tax policies are crucial steps that could help restore economic stability in Syria.
The situation with the Syrian pound remains precarious, marked by volatility in its exchange rates and significant inflation in basic goods. Experts indicate that mere fluctuations in the pound’s value do not correspond to real economic improvements, emphasizing that true stability hinges on structural economic changes and thoughtful monetary policy. Immediate action involving expert consultations and strategic monetary management is essential to fortify the pound’s value and secure economic recovery.
Original Source: syriadirect.org
