In a staggering turn of events, the value of the Syrian pound experienced a drastic plummet on Monday, nearly reaching the 10,000 mark against the US dollar on the unofficial black market, as reported by websites dedicated to monitoring exchange rates. This alarming decline follows years of conflict and the imposition of debilitating sanctions on the war-torn nation.
Prior to the eruption of Syria's civil war in 2011, the embattled currency maintained a rate of merely 47 pounds per dollar. However, the protracted conflict has resulted in over 500,000 casualties, the displacement of millions, and extensive damage to the country's infrastructure and industries.
According to the exchange rate monitoring platforms utilized by traders to ascertain the value of goods, the pound hit an unprecedented record low of 9,750 against the dollar on Monday. It is essential to note that this figure differs significantly from the official exchange rate sanctioned by the central bank, which currently stands at 6,532 pounds per dollar.
Syrian officials attribute the country's economic challenges to Western sanctions and the indirect repercussions of Lebanon's economic collapse, which has impeded the inflow of US dollars into areas controlled by the government. These latest developments coincide with Syria's recent reintegration into the Arab community after years of isolation, as Damascus seeks financial aid from affluent Gulf nations to facilitate reconstruction efforts.
Economist Ammar Yussef emphasized that despite the nation's return to the Arab fold, the ongoing conflict and the persistence of sanctions continue to exert considerable pressure on the plummeting value of the pound. He underscored that the effects of the Arab countries' renewed engagement with Syria are yet to materialize, particularly in terms of tangible economic measures.
The pound's precipitous decline, from 5,000 against the dollar in October, has triggered a sharp rise in the cost of essential goods, further exacerbating the prevailing hardships in a country ravaged by war and grappling with severe shortages of fuel and electricity. As per Syrian media reports, an average monthly salary of 130,000 pounds now equates to a meager sum of just over $13.
The United Nations has disclosed that a staggering 90 percent of the Syrian population lives below the poverty line, while the UN World Food Programme estimates that over 12 million individuals in the nation face food insecurity, further exacerbating the dire humanitarian situation.
