Syrian currency exchange rate causes suffering in Hasakah
HASAKAH, Syria (North Press) – A serious deterioration in the value of the Syrian currency against the dollar is causing suffering in Syria’s northeast, as the Syrian pound (SYP) recorded the lowest level in its history against foreign currencies after the US dollar exceeded 4,000 Syrian pounds with the continued decline.
The collapse of the currency has led to high prices and the inability of people to secure the life necessities and their basic needs, and the bulk of Syrians live below the poverty line, according to the United Nations
The reasons behind the chaotic exchange rate are still unclear in light of the failure of the Syrian government and the Central Bank to act; the Syrian government blames US and international sanctions for the economic crisis.
Ayman Kalash, the owner of a remittances office, said that today the dollar exceeded a historical price, exceeding a buying price of 3,680 SYP and selling 3,700 SYP against US dollar the time of this report.
He pointed out that “the rise in the exchange rate affects all people, because the rise of the dollar leads to an increase in the price of foodstuffs and thus increases the suffering of people and their inability to buy.”
He considers that the high prices due to the deterioration of the exchange rate leads to an increase in foodstuffs and the suffering of people and their inability to buy.
“Last year the dollar was sold at between 1,000 and 1,100 SYP. We, as exchange offices, are also affected by the increase in terms of storage. For example, storing 10 million pounds is not like storing 37 million pounds, and also the difficulty of counting the currency,” he added.
He indicated that “the Syrian Central Bank is still on the old exchange rate of 1,250 SYP, and has no role or influence on the exchange market.”
He said that remittances offices depend heavily on fees on remittances from abroad.
Wholesaler and retailer Assaf Ahmed told North Press that the instability of the exchange rate often brings market movement to a halt.
“The monthly salary of an employee with the Syrian government does not exceed 60,000 SYP, equivalent to $15. The situation is tragic,” he explained, adding that people buy even local goods in dollars and sell in pounds, leading to great losses for wholesalers.
“Sometimes we give people the goods on credit because they are unable to buy, but this process hurts us a lot because of the daily change in the exchange rate,” he added.
Retailers and money changers are not the only segments of the population affected by the wildly fluctuating exchange rate. Mamoun Hassan, an Autonomous Administration employee, says that there is a huge difference between his salary in Syrian currency and its dollar equivalent. “The monthly wage does not exceed 30 or 40 dollars, and monthly expenses for a good life are approximately 500 dollars,” he explains.
“The low wages do not meet the basic needs of the people,” he adds, concluding that weakness of local production and dependence on imported products have also added to the deteriorating living conditions in Syria’s northeast.