The Syrian Pound hits record low against the Dollar

The Syrian pound witnessed a new record decline in the black market on Monday, touching the threshold of ten thousand against the dollar, according to electronic applications monitoring currency movement.

After years of ongoing war since 2011, Syria is facing a severe economic crisis accompanied by a significant increase in the prices of basic commodities, constant electricity outages, and fuel shortages.

Unofficial electronic applications that monitor the black market, followed by Syrians, revealed that the exchange rate reached 9,750 Syrian pounds per US dollar on Monday.

Traders rely on the unofficial market rate monitored by these applications to determine their product prices, while the official exchange rate approved by the Central Bank stands at 6,532 Syrian pounds per US dollar.

Since the start of the conflict, the exchange rate of the Syrian pound has deteriorated by 99% in the black market.

However, this recent decline coincides with the resumption of relations between most Arab countries and Damascus, which is seeking Arab involvement in the reconstruction phase, while facing suffocating economic sanctions imposed by Western countries.

Economic analyst Ammar Youssef told Agence France-Presse, "The war is not over yet, and the reasons for the depreciation of the pound have not changed, given the absence of economic alternatives to improve the currency's performance, especially with the ongoing hindrance of export operations due to sanctions."

He considered that "the impact of Arab openness to Damascus has not yet begun, especially as it has not been accompanied by tangible economic steps."

Damascus has long considered economic sanctions as a primary cause for the continuous deterioration of its economy.

Despite a decline in the intensity of the battles in the country, where the conflict has claimed the lives of nearly half a million people, displaced millions, and destroyed infrastructure, it still suffers from difficult economic and living conditions.

The majority of Syrians are currently living below the poverty line, and over 12 million people suffer from food insecurity, according to the United Nations. Additionally, 2.7 million people experience severe food insecurity, while the prices of essential commodities continue to rise throughout the country.

 

AFP