Central Bank of Syria Sets New Exchange Rate Amid Economic Changes
The Central Bank of Syria has officially set the exchange rate of the Syrian lira at 12,500 liras to the dollar, marking a significant shift in the country's economic landscape following the recent overthrow of former President Bashar al-Assad. This decision is part of the first official price bulletin issued since the regime's fall on December 8, 2024. Prior to this change, the lira had depreciated to 15,000 liras per dollar during the last days of Assad's rule, highlighting a notable recovery in the currency's value.
Traders in Damascus attribute this rise to the return of thousands of Syrians who had fled the country during the civil war, as well as the increasing acceptance of the dollar and Turkish lira in everyday transactions. Under Assad's regime, the use of foreign currencies was heavily restricted, with severe penalties for those who mentioned the dollar publicly. The new government aims to stabilize the economy by adopting a more open approach to foreign currencies.
Economic Challenges and Government Initiatives
Despite the positive movement in the exchange rate, Syria's economic situation remains precarious. Caretaker Prime Minister Mohammed al-Bashir acknowledged that the country's foreign currency reserves are critically low, a consequence of years of conflict, Western sanctions, and the loss of oil-producing territories. The ongoing economic crisis has resulted in a significant portion of the population living below the poverty line, with average monthly wages around 300,000 liras (approximately $24).
The new government, formed by the opposition after taking control of Damascus, has pledged to raise wages and improve public services. Additionally, they plan to implement a free-market model and integrate Syria into the global economy, moving away from the decades of state-controlled economic policies that characterized Assad's rule.
Gold Reserves and Future Prospects
In terms of assets, the Central Bank of Syria reportedly holds about 26 tons of gold, a figure that has remained stable since the onset of the revolution in 2011. This gold reserve is valued at approximately $2.2 billion based on current market prices. However, the bank's hard currency reserves are minimal, posing challenges for the new government's economic strategies.
As Syria navigates this transitional period, the government's commitment to reform and economic recovery will be critical in determining the future stability of the Syrian lira and the overall economy.
