Syrian Pound Plummets Amid Latest Turkey-backed Opposition Gains: Economic Chaos Deepens

By Kardo Roj

QAMISHLI, Syria (North Press) – The Syrian pound (SYP) has plunged to unprecedented lows in the past week, reflecting the severe economic repercussions of intensifying military advances by opposition forces backed by Turkey. The rapid collapse of the currency underlines the deepening chaos in Syria as opposition factions have seized major cities, including Aleppo and Hama, and are advancing toward Damascus.

A Currency in Freefall

In Syria’s northern city of Qamishli, the dollar currently trades for approximately 28,000 SYP, marking a dramatic 50% drop in value within a week. Meanwhile, Aleppo has seen exchange rates soar to a staggering 42,000 SYP per dollar, with Idlib close behind at 40,000 SYP. This sharp depreciation has led to widespread price hikes for essential goods and services, with inflation rates ranging from 30% to 50% across the country.

Xorsid Elika, an economics professor at Al-Furat University in Hasakah, explains the underlying causes:

“The Syrian pound’s collapse is driven by political instability, military advances, and the rapid loss of government-controlled territories, which account for over 40% of the national GDP. Without a political solution, the dollar may soon exceed 30,000 SYP.”

Elika’s words resonate as Syrians grapple with skyrocketing living costs and dwindling trust in the government’s ability to stabilize the economy.

Historical Context: The Pound’s Long Decline

The Syrian pound’s freefall is the culmination of years of economic erosion. Before the Syrian conflict began in 2011, the dollar traded at just 46 SYP. By late 2011, it reached 60 SYP and continued to depreciate dramatically as the war unfolded:

2012: 75–95 SYP per dollar

2013: Peaked at 300 SYP briefly but averaged 165–170 SYP

2016: A steep drop to 500–700 SYP, marking a historic low

2020: The currency hit 3,000 SYP per dollar

2023: Stabilized briefly at 16,000 SYP

This year, however, has seen a sharp escalation in the currency’s devaluation, with recent events pushing it into uncharted territory.

Impact of Turkey-backed Opposition Advances

The currency’s latest collapse coincides with significant territorial losses by the Syrian government. Turkish-backed factions, along with Hayat Tahrir al-Sham (HTS), have launched a coordinated offensive, gaining control of Aleppo, Hama, and other strategic areas. The rapid shift in territorial control has intensified uncertainty, as government forces retreat under pressure.

These developments are not merely military victories; they represent a seismic shift in economic power. Aleppo and Hama are critical industrial and agricultural hubs, and their loss has severely undermined the government’s economic base. Opposition forces are also approaching Damascus, further eroding confidence in the regime’s stability.

Widespread Economic Impact

The depreciation of the Syrian pound has far-reaching consequences for ordinary Syrians. Residents of Aleppo report a surge in food prices, with basic goods now beyond the reach of many families.

A currency exchange operator in Aleppo told North Press:

“The dollar has reached 42,000 SYP, a record high. People are panicking, and businesses are struggling to keep up with the rising costs of imported goods.”

In Idlib, traders have expressed similar concerns:

“The dollar is now at 40,000 SYP. Inflation is out of control, and people are hoarding what little they can afford, fearing even higher prices.”

The Role of International Dynamics

The conflict’s impact on the Syrian economy is exacerbated by international factors. Russia, a key ally of President Bashar al-Assad, has been preoccupied with its ongoing war in Ukraine. The strain on Russian resources has reduced its ability to provide the financial and military support that the Syrian government relies on.

Meanwhile, Turkey-backed opposition forces have intensified their push, emboldened by the weakening grip of Assad’s regime. This alignment has reshaped the balance of power on the ground and further destabilized the economy.

The Path Forward

Experts warn that the Syrian pound will continue to depreciate unless there is a resolution to the political and military crisis. The government’s inability to regain control over key economic centers, coupled with the absence of international mediation, suggests that the economic collapse may deepen.

Elika offers a grim forecast:

“The Syrian economy is on the brink. Without immediate intervention, the currency’s value will spiral further, driving millions deeper into poverty.”

A Nation at the Crossroads

For Syrians, the economic crisis is yet another chapter in a conflict that has devastated lives and livelihoods for over a decade. What began as a civil uprising in 2011 has evolved into a protracted war with profound economic implications.

The loss of Aleppo and Hama, combined with the currency’s collapse, underscores the fragility of Assad’s regime. As opposition forces advance toward Damascus, the stakes are higher than ever. The question now is whether Syria can navigate this crisis or if the currency’s collapse will mark the beginning of an even darker period for the war-torn nation.

For millions of Syrians, the path forward remains uncertain, with hope overshadowed by the grim realities of war and economic despair.