Displaying items by tag: Syrian Economic Crisis

The Central Bank of Syria issued a statement on February 14 about the situation in the exchange market. The statement and the procedures that have been taken were mostly about “security”, as the collaboration between the Anti-Money-Laundering/ Combating the Financing of Terrorism and stakeholders was discussed to conquer a group of companies and agencies that work in speculation on the Syrian Pound and confiscating large amounts of money in the Syrian Pound and the US dollar. The statement also discussed other non-specific intervention tools.

It really suits the US that the (Syrian Quagmire), according to their expression, gets stabilized, i.e.: that the political stalemate guarantees the interaction of multiple factors in order for the country to remain a quagmire that swallows what has remained of capabilities and resources, and drives away all those who are capable and willing to lift the country up. 

When the number 3500 billion SYP is mentioned in the budget, we are talking about 40% of total government expenditure for 2021. It’s the most important expenditure bloc in the budget, which is a normal thing because it reflects the significance of the energy sector and securing essential food at least, i.e., it is the sum that expresses the continuance of securing the essentials for living, as the confusion in dealing with subsidies, rethinking about them, and trying to reduce them, is a major part of the crisis of the decline in the means of life support inside the country.

Logical estimates say that the newly introduced 5000 SYP [a piece of paper money that had never existed before] will turn into a surplus money supply in the market because the current level of prices needs an additional money supply of Syrian pounds. However, this will not be a reason for price increase, as prices are practically dollarized and are deeply related to the decline in the flow of goods inside and into the Syrian economy.

Why is it so difficult to provide stable energy flows? Is it the sanctions? Syrian official authorities deny the fact that the sanctions are the main reason of the current economic crisis, rather they point towards adapting to it and to the fact that it existed before. So, according to them, the problem is due to dollar shortage, particularly its shortage in Public Finance, and the inability to pay suppliers.

Environment statistics are the least elaborate statistics in Syria. Despite the increase in wildfire frequency during the past decade, and the impact of global climate change on the increase of wildfires worldwide, Syrian data do not regularly monitor these fires or they do not make it available to everyone. Also, what is being published about the wildfires and the losses in woodland areas vary to a large extent between international and local estimates.

Disparities between the wealthy and the poor in Syria do not need statistics and proofs, as street children sleep on the ground and cry out for water in front of hotel visitors like the Four Seasons in central Damascus. Not to mention the financial elites whom we do not see, instead they gather in isolated wealthy compounds. However, numbers are necessary and more informative than sightings, and therefore, statistics of income disparities between the wealthiest and the poorest have never been included in governmental accounting and have always been within the framework of appreciation and diligence.

The government managed to raise nearly 465 billion Syrian pounds from issuing treasury bonds and certificates of deposit during the previous eight months of this year, which is an internal public debt loaned by public and private operating banks and their clients to the state, in return for interest rates and benefits in a period of time between 6 months to two years.