Economic Crisis in Damascus Amid Currency Collapse
The ongoing economic turmoil in Syria is severely impacting the daily lives of citizens in Damascus, as the value of the Syrian pound continues to plummet. Recently, the lira has experienced a staggering collapse of over 20%, leading to significant fluctuations in exchange rates and a sharp increase in the prices of essential goods. The Central Bank of Syria has issued two different exchange bulletins, with the official rate set at 12,562 liras per dollar, while the parallel market rate ranges between 16,800 and 17,500 liras per dollar. This disparity has created confusion and speculation in the market, exacerbating the economic crisis.
Impact on Daily Life and Prices
Residents are feeling the pinch as the prices of basic commodities soar. For instance, the price of sugar has jumped from 11,000 to 15,000 liras per kilo in just a short period. Umm Khaled, a local resident, reported that her weekly grocery expenses have increased from 150,000 to at least 200,000 liras. The demand for essential goods remains high, but the purchasing power of individuals has significantly weakened, leading to stagnation in larger transactions like real estate and vehicle purchases.
Speculation and Market Manipulation
Market speculators are taking advantage of the situation, controlling prices and ensuring their profits at the expense of consumers. Retailers adjust their prices based on anticipated future costs, leading to further inflation. Maher, a restaurant manager, noted that the rising costs of operating during winter have compelled businesses to increase their prices, creating a cycle of inflation that affects all sectors.
Pharmaceutical and Fuel Supply Challenges
The pharmaceutical sector is also feeling the strain, with reduced imports from local factories and an increasing demand for essential medications. Pharmacists are facing challenges in maintaining stock levels, particularly for critical medications. Additionally, fuel prices have surged, with many drivers resorting to the black market for gasoline, further complicating the economic landscape. Abu Ismail, a taxi driver, shared his struggles with rising fuel costs and the reliance on unofficial sources for gasoline.
Official Responses and Future Outlook
Despite the dire situation, officials like Ghazwan Al-Halabi, head of the Damascus Chamber of Industry, downplay the crisis, attributing the rise in dollar prices to the black market. However, the reality on the ground suggests a growing economic disaster that could lead to further unrest if not addressed. As the situation evolves, the citizens of Damascus continue to navigate an increasingly challenging economic environment.
