Prices rise in north-eastern Syria provoke resentment among the locals

Kobani – North-Press Agency

The value of the Syrian pound (lira) has critically declined against the U.S. dollar in the past two months, affecting all aspects of life throughout Syria, including north-eastern Syria, which imports most of its main resources from the neighboring countries, in foreign currencies.

Recession in the market

People of north-eastern Syria suffer difficulties in securing the basic materials because of the high prices compared to the per capita income, where the exchange rate against the dollar has recently reached about 850 Syrian pounds, the highest ever, as most of these materials are bought in the foreign currency and are sold in the Syrian pound.

Sabah Mohammed, a citizen in the city of Kobani told North-Press that the market shrunk after the dollar has risen, while wondering: "How can the poor people make their living?"

While Mazloum Joudi, an owner of a shoe store in Kobani, said the decline in the value of the Syrian pound against the dollar has led to a recession in the market movement, where the value of the goods has doubled. “The costs of shipping goods have also increased due to the rising of the exchange rate of the dollar, which has made the situation difficult not only for people, but also for traders," he said.

In a related context, Bilind Hanifi said: "When the exchange rates are stable, we store the materials in the warehouses, these materials provided our need for three months, but now we import in small quantities and do not store them in warehouses for fears of falling exchange rates.”

Additional customs duties

The north-eastern territories of Syria consume foodstuffs and products from areas controlled by the Syrian government and Kurdistan Region of Iraq via crossings to meet the needs of the region. Khalil Kalou, a vegetable shopkeeper believes that, in addition to the high exchange rate of the dollar against the Syrian pound, the Autonomous Administration has imposed import tariffs, which in turn have increased the burden on the citizens. The Autonomous Administration relies in its dealings on the Syrian currency, which requires to take other economic measures, in order to compensate the decline in its revenues that is associated with the dollar. Revenues of the Autonomous Administration have declined after the repositioning of the U.S. forces in the eastern oil region of the country, the Turkish military invasion and the cut off of M4 highway, which is a basic trade route in Aliya point, west of Tal Tamr, as well as the withdrawal of  the international organizations from most areas of northeastern Syria.

Doomed by the dollar, while the government is powerless

Dilshad Keiko, an owner of a money exchange office in Kobani said the dollar's rise is linked to the developments in the region. "We are doomed to the dollar and we are completely surrounded, there are international economic pressures on us," he said. He added that the Syrian government is unable to face the economic pressures imposed on it.