The global financial system reflects the way in which international economic exchanges, pricing mechanisms, exchanging between currencies, and the settlement of financial payments are arranged. As is the case in all historic phenomena, the international financial system is not eternal, rather a phenomenon that evolves according to the changes in circumstances and balances.
Ten years and our crisis is still ongoing, and the deterioration of the value of the Syrian pound that we see in the increase of the level of prices is its most prominent economic epitome, as it reflects the overall economic, social and political deterioration as well. This insane high rocketing in prices means that poverty is practically reaching more than 85% of Syrians, and also hunger reaching nearly two-thirds of Syrians across the country. It is also an expression of mega-rich people's protection of their wealth through their commodities that preserve their value, most notably: the dollar and gold.
It does not matter what is the dollar figure in exchange for the Syrian pound. The most important thing today in light of the expanding hunger is the Syrian pound figure in exchange for food. The collapse of the Syrian pound on this scale is the highest and the most dangerous, and food prices are skyrocketing at rates that exceed the price of the dollar. The issue is no longer related to import and the price of the dollar directly, as much as it is related to the (heart attack) that the Syrian economy is suffering from, which some of its officials are still saying that (the indicators are good) but (the problem is with speculators)!
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.
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.
Statements by Macron, Merkel, and other European leaders regarding the “Black Wednesday” the US lived were not statements of “solidarity”, but rather an expression of panic and fear of the horror of the scene that threatens of the “water reaching their shores”.
