Voice of America
12 Sep 2019, 01:05 GMT+10
CAIRO - Sanctions and other economic pressures are making the lives of ordinary Syrians even more difficult, as the country's national currency falls to record lows against the U.S. dollar in black market trading this week.
Arab news channels reported last month that Moscow had asked President Bashar al-Assad to pay $3 billion to defray costs for the deployment of Russian troops in Syria, causing a drain on government reserves. Deputy Russian Foreign Minister Mikhail Bogdanov denied the claim.
Syrian analyst Majed Ruslan told Arab media that the Syrian pound is hovering at about 650 to the dollar on the black market, while the official rate remains close to 430. This, he said, is causing pressure on ordinary Syrians as prices increase for consumer goods such as cooking oil, dairy products and gasoline.
Syria's Central Bank governor, Hazem Karfoul, told state TV earlier this summer that it was not a wise policy to use foreign currency reserves to prop up the value of the pound.
Syria, he said, can't keep focusing on the numeric value of the exchange rate and exhausting its resources in defending it. The exchange rate is a barometer, not a battle line to defend at all costs, he added.
The plunging value of the Syrian currency came despite efforts by the government to give the impression of economic normalcy returning to the country.
Last week, amid much fanfare, the government hosted the Damascus International Trade Fair. However, it was not clear how many international companies signed deals, given the risks of falling afoul of U.S. economic sanctions.
Syria's labor minister, Jamal Qadry, lashed out at international pressures and countries like the U.S. that have been applying them.
While attending the Third International Labor Forum earlier this week, Qadry said international participants were showing solidarity with the workers of Syria in the face of an economic embargo and imperialist intervention and support for terrorism.
Syrian analyst and researcher Nasser Zuheir told a Syrian opposition TV channel, however, that he does not think that economic sanctions will cause the government to collapse, but will put pressure on the government and ordinary citizens.
The fall of the pound comes after the collapse of political talks, he said, adding that there are firewalls to stop the currency from deteriorating beyond a certain point.
Khattar Abou Diab, who teaches political science at the University of Paris, told VOA that it is "not clear whether the fall of the pound is due to international sanctions or backlash from government efforts to crack down on economic mafia warlords in the country," such as his brother-in-law, well-known businessman Ramy Makhlouf, who was reportedly placed under house arrest last month. Many warlords have money stashed in Lebanese banks that the government would like to recuperate.
Abou Diab points out that Tuesday's black market value of the Syrian pound (670 to the dollar) makes the monthly minimum wage salary of a Syrian worker worth just $45.
"The average Syrian is being severely punished," he said, "but the government is unlikely to be affected by any popular backlash."
Get a daily dose of Toronto Telegraph news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Toronto Telegraph.
More InformationHONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
NEW YORK, New York - Monday's trading session saw mixed performances across U.S. and global markets, with several major indices posting...
WASHINGTON, D.C.: The U.S. government has granted GE Aerospace permission to resume jet engine shipments to China's COMAC, a person...
DUBAI, U.A.E.: Saudi Aramco is exploring asset sales as part of a broader push to unlock capital, with gas-fired power plants among...
MILAN, Italy: Italian regulators have flagged four non-EU countries—including Russia—as carrying systemic financial risk for domestic...
NEW YORK CITY, New York: With just weeks to spare before a potential government default, U.S. lawmakers passed a sweeping tax and spending...
(Photo credit: Kamil Krzaczynski-Imagn Images) A common refrain during the Toronto Blue Jays' best winning streak in a decade has...
(Photo credit: Thomas Shea-Imagn Images) Brayan Rocchio lined a go-ahead, two-run double into the left field corner with two outs...
(Photo credit: Matt Marton-Imagn Images) Joey Loperfido, Nathan Lukes and Addison Barger homered and Jose Berrios pitched six strong...
(Photo credit: Kim Klement-Imagn Images) Tyler Johnson, who played 13 seasons in the NHL and won back-to-back Stanley Cups with the...
(Photo credit: Bill Streicher-Imagn Images) Veteran guard Kyle Lowry, who spent parts of the last two seasons playing in his hometown...
(Photo credit: Bob DeChiara-Imagn Images) The Heat, Clippers and Jazz completed a deal on Monday that sent John Collins to Los Angeles,...