Syrian Pound Strengthens Against the Dollar Amid Economic Changes
The Syrian pound has shown a significant improvement against the US dollar and other currencies, according to recent data from the Central Bank of Syria. On December 24, 2024, the exchange rate for purchasing the dollar fell to 14,500 liras, down from 14,650 liras the previous day. Similarly, the selling price decreased to 14,645 liras from 14,800 liras. This trend reflects a broader economic shift in Syria, particularly following the recent political changes in the country.
In addition to the dollar, the euro also saw a decline in its average price, dropping from 15,358 liras to 14,725 liras. Data from the Lira Today website, which monitors parallel market transactions in Syria's major cities, indicates that in Damascus, the dollar's purchase price fell to 13,800 liras from 14,750 liras, while the selling price was recorded at 14,200 liras.
The rise in the value of the Syrian pound can be attributed to the recent political upheaval, specifically the fall of Bashar al-Assad's regime. Following this event, the pound appreciated by approximately 20% against the dollar within just two days. The exchange rate fluctuated between 10,000 and 12,500 liras against the dollar on December 14, showcasing a stark contrast to the rates prior to the regime's collapse. This surge is largely due to the influx of displaced Syrians returning from Lebanon and Jordan, alongside the lifting of stringent foreign currency trading restrictions.
Economic Context and Future Implications
The economic landscape in Syria remains precarious, with over 90% of the population living below the poverty line, as reported by UN agencies. Despite the recent gains in the currency's value, the overall economic situation continues to be challenging for many Syrians. The recent changes have allowed for greater freedom in currency trading, which was previously heavily restricted, leading to a climate where discussing foreign currencies could result in severe penalties.
As the country navigates this transitional phase, the impact of returning citizens and the new economic policies will be crucial in shaping Syria's financial future. The slight decrease in gold prices, with 21 karat gold now at 1,059,000 liras for purchase, further indicates the volatility of the market. Traders and economists will be closely monitoring these developments as Syria seeks to stabilize its economy in the wake of significant political changes.
