The war of the dollar against the Syrian pound: growing poverty and increasing consumer prices

In recent days the dollar is trading at 650 Syrian pound. Many fleeing ask for dollars or Euros. Poverty now affects 85% of the population.


 

Damascus (AsiaNews) - In the streets of the ancient Syrian capital people talk of little else: people already exasperated by long years of war and fear, no longer discuss the progress of fighting instead all conversations focus on how the Syrian pound is trading against the dollar. In the past two days, in fact, the dollar has been trading for 650 Syrian pounds, an unprecedented record, with all that it means in mushrooming consumer prices. Concerns are mounting and are already visible in the comments left on social media.

Assurances by the governor of the Syrian Central Bank, Dr. Adib Mayala, have had little effect.  On May 9, he claimed that the dollar's gain on the pounds was "fictitious" and did not "correspond to reality," adding that the resounding " increase occurred in the exchange rates [of the dollar against the pounds] over the past 10 days, during which unjustified increases of 100 pounds more (per dollar) were recorded". Meanwhile, the black market moneychangers have stopped selling greenbacks increasing fears about a possible further increase in the dollar.

Many families have now been reduced to poverty. According to a recent study by a Syrian NGO, at the end of 2015, poverty has reached 85% of the population, and any higher inflation could seriously cripple the entire population.

Domestic demand for the American currency, needed for imports, is increasing as have the number of currency traffickers who make the Beirut-Damascus route to import more dollars in high demand for those who wish to flee abroad. They already know they have to pay for their trip in dollars or euros.

Mohammad Al Sawah, president of the Exporters Union, believes that the appreciation of the dollar against the Syrian pound is due to the 90% of citizens fear of seeing the Syrian pound losing further against the US dollar. He called on all Syrians to regain confidence in the pounds and "stop selling pounds to buy dollars for a week".

But these reassuring statements are doing little to calm the minds and conversations on the dollar against the pounds which seems to be the number one topic for all Syrians, not only among those who are fleeing war, but also among those of relatively quieter coastal areas. (PB)

• Syria economy dollar Syrian
• lira poverty refugees refugees