The rise of the Syrian pound may signal a potential stabilization of the economy as political changes take place.
The shift towards a market economy could attract foreign investment and aid, crucial for rebuilding the war-torn nation.
The involvement of regional powers like Türkiye in Syria's economic recovery could reshape alliances and economic strategies in the Middle East.
If the new government successfully implements market reforms, Syria could see gradual economic recovery and stabilization in the coming years.
Increased foreign investment may lead to job creation and improved living standards for the Syrian population, contingent on political stability.
The transition to a market economy may also lead to challenges, including potential social unrest if reforms are not managed equitably.
The Syrian pound has recently risen against the US dollar, trading between 11,500 and 12,500, as reported by exchange workers in Damascus. This rise comes in the wake of significant political changes in the country, particularly the recent entry of opposition factions into the capital, prompting President Bashar al-Assad to flee after over five decades of rule.
The Syrian economy has faced severe challenges, with the pound losing value against the dollar by 270 times from 2011 to 2023, leading to rampant inflation. Economic data indicates that Syria's GDP has shrunk by more than 85% during this period, now standing at approximately $9 billion. Experts predict a further contraction of 1.5% this year.
With the departure of the Assad regime, there are expectations for economic recovery, supported by regional countries such as Türkiye. The new government is reportedly planning to shift towards a market economy, moving away from decades of centralized state control. The head of the Damascus Chamber of Commerce, Basil al-Hamwi, indicated that the government aims to adopt a free-market model and integrate Syria into the global economy.
- The political upheaval in Syria marks a significant turning point, as the opposition's control of Damascus could lead to a restructuring of the country's governance and economic policies.
