Post-Assad economy: Syria's currency stabilizes as challenges persist

Report by Lea Fayad, English adaptation by Yasmine Jaroudi

In Syria, the use of foreign currencies such as the U.S. dollar or Turkish lira is now permitted, marking a significant shift from the strict currency controls imposed during Assad's rule. 

Previously, using non-Syrian currencies was punishable by imprisonment.  

This relaxation, combined with the return of thousands of Syrians from abroad carrying foreign currencies, has contributed to a recent improvement in the value of the Syrian pound. 

The currency, which had plummeted to over 40,000 pounds per U.S. dollar in some regions during the final days of Assad's rule, has now stabilized at around 15,000 pounds per dollar.  

However, economic analysts caution that this recovery is temporary. The country faces a severe shortage of foreign currency reserves, a critical factor for stabilizing the exchange rate. Syria's central bank lacks sufficient reserves, leaving the economy vulnerable.  

One of the primary challenges is the continued enforcement of the Caesar Act sanctions since 2020. These sanctions have forced Syria to rely on alternative and often illicit methods to acquire foreign currency, including:  

-       Captagon trade which generates over $5 billion annually.  

-       Smuggling goods, including oil, from neighboring countries like Lebanon.  

-       Humanitarian aid was boosted after the February 2023 earthquake.  

-       Support from allies such as Iran.  

-       Remittances that Syrian expatriates send are estimated at $2 billion annually.  

With the Assad regime no longer in power, sanctions remain in place. Experts emphasize that lifting these sanctions is crucial for economic recovery. 

Nonetheless, this depends on the new authority's adherence to standards set by Western and regional nations, including inclusive governance and the protection of minority and women's rights.