Raising salaries in Syria will not solve high prices problem: Economist
Raising salaries in Syria will not solve high prices problem: Economist
DAMSCUS, Syria (North Press) – The current salary increase will produce more inflation because it is an increase of money supply not accompanied by an increase in commodity production, an economist said on Monday.
On Sunday, the Syrian President Bashar al-Assad issued the Legislative Decree No. 19, which stipulates an increase in the salaries of state employees by 50%. He also issued the Decree No. 20 to increase the pensions of retirees by 40%.
“The employees will not benefit from the Legislative Decree due to the raising of the prices of fuel and bread before the issuance of the decree,” the economist, who resides in Damascus, told North Press.
“If the general level of prices rises by more than 50%, which will happen, this means the failure of monetary policy,” he added.
The dollar exchange rate in the black market is 3,270 Syrian pounds (SYP), according to the Syrian Pound Today website, while the Syrian government keeps the exchange rate fixed at the level of 2,252 SYP per dollar.