Displaying items by tag: Syrian Economic Crisis

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.

The Energy crisis is the epitome of all current crises, as it practically reflects the crisis of the Syrian pound and the inability of the funds available in the national currency to secure the needs of importing the mainstay of production, which is represented in oil. It also reflects the crisis of the decline in the economic and social role of the state apparatus and its inability to secure the basics, in addition to the state of production paralysis affecting the country. The worst, is that all the current indications show that the energy crisis cannot be seriously solved with such resources and such performance.

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 Minister of Economy appeared in an interview on the Syrian Satellite Channel on March 24, 2021 talking about the economic situation, and his speech is said to ignore the (elephant in the room) or perhaps more precisely the (whale floating in the pond) because it describes our situation better! He spoke at length about the government’s endeavors and efforts, and ignored the fact that the government’s actions are practically without effect! However, this article is considered (in defense of the government) being an apparatus with limited capabilities that has to carry the burdens of others.

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.