Weakening Syrian Pound putting increased pressure on the Autonomous Administration

QAMISHLI; DAMASCUS – Food and commodity prices across Syria have been on the rise as inflation amidst a weakening currency takes its toll. Over the course of the last two weeks, the Syrian Pound has plummeted some 10% in value against the U.S. Dollar.

Prior to the outbreak of the civil war, the Syrian Pound exchanged with the dollar at a rate of 47:1. Now, according to al-Masdar News the Syrian Central Bank reportedly posted on its website that the official rate of exchange with the dollar was 434:1. The rate you’ll find on the street, however, is more likely to be worse than 1,000:1.

The steady decline turned into a dive following the U.S. drone strike that killed Iranian General, Qassem Soleimani.

Although Soleimani wasn’t Syrian, and he wasn’t killed in Syria, his death at the hands of the U.S. has been catastrophic for the Syrian economy. Iranian investment in the Syrian economy had helped to keep things from falling off a cliff’s edge. The killing of Soleimani, and the Iranian missile barrage in response, pushed it over.

“The economic impact quickly reflected on the currency exchange rate,” a senior Damascus-based financier who requested anonymity told Reuters.

As economic sanctions take hold and regional tensions and civil unrest increases, the flow of foreign currency and capital investment between Syria, Iran, and Lebanon – another important trading partner for Syria – is likely to dry up.

Lebanon has been experiencing its own economic crisis since mid-October.

Currently being invaded by Turkey (and previously under de facto embargo) and with trade across the Iraqi border at times unreliable, the plunging Syrian Pound is set to hit the Autonomous Administration of North and East Syria hard.

Earlier this week the Medical Association Council in Jazira Region issued a decision to raise the price of general and specialized medical examinations, excluding ocular exams, due to the increased costs of food and power resulting from inflation.

The decision was met with great public dissatisfaction and the Council swiftly reversed the decision and would apply the medical value list issued by the Council for the year of 2017 instead.