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AUGUST 2020

Syrian Currency Falls Following US Announcement Of More Unilateral Sanctions

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Syrian Currency Falls Following US Announcement Of More Unilateral Sanctions

US Treasury Department

Prices of food, medicine, and other basics are spiralling out of reach in Syrian markets as the local currency collapses in value, shortly before new unilateral US sanctions come into force.

The pound’s decline has accelerated since mid-October of last year when the financial crisis in neighbouring Lebanon choked off a main source of foreign currency inflows. International sanctions against Syria, damage to the country’s industry from the fighting, and an exodus of money by panicked Syrians had pushed the currency sharply lower during the conflict, now in its ninth year.

The value of the Syrian pound on the informal market has plunged from about 940 to the US dollar in January to a rate today of at least 3,000. And the rate of decline has been accelerating: it has more than halved in value since the beginning of May and dropped even faster in the last week.

Stiff penalties and a range of restrictions on unauthorised transactions and foreign currency dealings imposed by the Central Bank have not led to any levelling off of the rate. Its official price stands at 704.

Local media and Syrian diaspora reports say shops and pharmacies are keeping their doors shut because the value of the currency is dropping too fast for traders to set prices. Price rises of essentials including cooking gas, bread, and sugar – combined with increasingly worthless wages – are leading to public alarm and anger. At 2,000 Syrian pounds, a kilo of lemons is out of reach for a civil servant whose salary is now worth less than $20 a month.

As Syria enters its tenth year of civil war, more than 11 million people inside the country require humanitarian assistance, about half of whom are displaced from their original homes. Price rises are driving more people into poverty and food insecurity is rising, even in parts of the country relatively unaffected by the instability of recent years.

Before the latest crash, about a third of the population were not getting enough to eat, and 87% had no savings, according to a WFP survey in April. The price for a typical “reference” basket of food items such as flour, beans and oil representing a month’s supply had increased 111% in a year, according to WFP.

Inflation and shortages have led to new levels of poverty in government-controlled areas, while some areas controlled by opposition armed groups in the north have reportedly adopted the Turkish lira or dollar as alternatives to the Syrian pound.

The current economic crisis has multiple causes: the long civil war has exhausted all reserves Syria may have had; economic and political turmoil in Lebanon has seized up its dollar banking sector – used by Syrian importers and for the hard currency deposits of Syrian businesses; oil and gas production is barely functioning in Syrian government-held areas; the business empire of tycoon and al-Assad relative Rami Maklouf has been partially suspended; and Russia and Iran have limited capacity to offset the impact of the sanctions.

Analysts dispute whether the US sanctions, to be imposed pursuant to the so-called ‘Caesar Syria Civilian Protection Law’, are the primary cause of the present crash. Sanctions have already contributed to severe socio-economic impacts on the civilian population, despite being presented as highly targeted. The latest batch of sanctions is also designed to deter any foreign involvement in reconstruction of infrastructure damaged in the war, which includes civilian sites.

The sanctions penalise most transactions with the Syrian state and the supposed aim of the sanctions is to limit its military, construction projects, and the oil and gas industries. The measures, introduced in response to alleged repression and human rights abuses according to US officials, will start on 17 June.

There are no UN sanctions on the Syrian government itself or its leadership. However, sanctions by the United States and the EU have had a cumulative effect on humanitarian operations, and securing waivers to allow aid-related imports and bank transfers can be onerous: US banking and economic sanctions have squeezed out most trade with Syria. At the same time, Syria’s main supplier of fuel – including cooking gas – is Iran, and tighter US sanctions on shipping have limited those imports too. LINK

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  • Christian S

    Dollar will crash before Syrian pound will, when US economy crashes so will their sanctions.

    • Jens Holm

      You probatly put pepper on the Syrian Micky Mouse money, so they feel stronger.

      The USA economy cant crash. It can decline.

      The Syrian economy has been crashed for years. Theu even put own fields in fire. UN has to feeed 25% of the population. Apart from being mercenairies, there are no jobs there. More then 50% of the men had no jobs before the fightings, which is a very important reasosn for the opposition and fightings to Assads.

      Its much worse for women. As second or third class citicens hardly any has jobs apart from being in the front, when men cross minefields.

      • dontlietome

        Fuck off and die you shitty mouthed moron.

        • Jens Holm

          You just confirm, what normal inhabitants in the Region are up against. Not strange they prefare to be refugees and to live among christians and infidels instead of You and Your wife which according to Islam is made of clay and therefore has to be treated as hardly human.

          It would be nice if You told, where my corretions should be.

          • John Wallace

            Dumfuk

    • dontlietome

      The dollar is worth nothing, its only held in place by tyrants who blackmail the world into trading with it…………………………………..Its the man with the most guns that has the say.

  • Free man

    The Syrian currency has been collapsing for a while now. Syria’s economic crisis is extremely acute.
    This is what Assad’s supporter have to say about the economic situation in Syria:
    https://twitter.com/Dannymakkisyria/status/1269551089755586561
    Sanctions, Corruption, and the Lebanon crisis have all combined to shred the economy to pieces, there is no quick fix.

  • IggyBundy

    The EU alone spent over $180 BILLION to equip a mercenary army to murder Syrians..

  • Willing Conscience (The Truths

    All US and most EU sanctions would disappear the second Iran starts pulling it’s military forces out of Syria, that doesn’t mean Iran’s civilian infrastructure and personnel, just their military forces and infrastructure, that’s one way to improve the Syrian economy.
    Assad could also accept the Saudis offer of one billion US dollars for the reconstruction of Syrian assets, that would definitely get the economy up and running again, construction and manufacturing would get a massive boost, sadly Assad said no to that too.

    The opposition forces that Turkey supports in Syria will get a huge advantage over the SAA and HTS now, they’ll be paying the highest wages to the civilians and military alike, which’ll means the pro Turkish supporters will be able to buy more food and medicine than the HTS and Syrian government employees can, which’ll mean the pro Turkish supporters will get the lion’s share of everything, and that’s because they’ll be able to pay the most money for it, that’s the way it usually works.
    The Turkish backed government in Syria now using the Turkish lira instead of the Syrian pound control about one third of occupied Idlib/Latakia, and most if not all of occupied Aleppo, and all of Turkish occupied Ar Raqqah and Al Hasakah, so they’ll all become wealthier due to the change in currency.
    The government HTS controls is active in parts of occupied Latakia, it possibly has some areas of control in occupied Aleppo too, and it controls approx 70% of Idlib, but they’re all about to become the poor people in the occupied territories, no lira for the government HTS runs.
    This is really bad news even if SF isn’t saying it, the Turkish backed opposition will get a huge advantage now they’re using the Turkish lira.
    Syrialiveuamaps announced this news 2 days ago, so you’re too slow SF.

    On a side note Iran pays it’s foreign militias like Hezbollah 400 US dollars [equivalent] a month, and there’s at least 150,000 of them in Syria alone, so what’s that costing Iran, 400 X 150,000 = 60 million a month, that’s a lot of money, 720 mill a year.

    • hvaiallverden

      Nice eh… pipe dream isnt it, WC and ugh… truth, but the thing is, this presumes that Syria is willing to give away the fertail North, the eastern oilfields, of course and the Golan heights to ISISrael, and then Syria will be soooo much better off, right WC (a proper name) and the only problem is, since this senario is based on the present treason of the Russians, not because the Turds are better off, because the impacts of the world wide downfall is yet to come, but the main factore is that Syrians have their own currency and despite the fall in their currency is more due to the impact on the stock marked and of course the invading armys occupying large parts of Syrian land and resources.
      The problem for the others aka the west is more due to the MMT than anything else, printing mooney out of thin air, and for how long do you think that can edure, the uncertaties are massive in your asssment of this economic times, when the Turds also depends on the west whom is right now in decline, due to their self inflicted wounds etc to the delution of their MMT.

      The thing is, we all, incl the nations mentioned knows this, the moment you cave inn, is the moment you loose your land, Saudi-barbarians have wiggled them self into something that will have an hughe impact on their own nations economy etc, and Turds is on unchatered teritory and the maybes are massive, but the main problem is scums like you whom is trying to justify another nations invasion of Syria and now claims they can some how rescue Syria, fascinating twist in this senario.

      But again, you are not saying anything substancial, just hammering the nations whom is legitimate in their suport of the Syrian Gov, so we can safely asume you are an disinfo bitch from where is basically irrelevant, since this senario isnt certain at all, but I place a large part of the latest evolvements in the treason comitted by Putin.
      Period.

      peace

      • Jens Holm

        North of Syria is not fertile at all. The reason for a lot of corn and other things from there are, they use a lot of land and hard work.

        People even joke about those poor farmers and name them beduins, because all animals has to be taken around for finding at least some food.

        Its 250 mm a year and HOT.

        Much like You dont understand why the Kurdish devellopment program includes better landuse as well as so many there inclusive Turkmens urbanize and by that leave their villages.

        Turks by taking river water and the climate change will make it worse and Assads dont help with those oil mpiey, because those money are private property of the Bath Party.

        Willing Conscience has no need for making any substance. It already has been well described facts for decades what its all about. You can even find Youtubes about it,

        And You give none Yourself apart from everyboduy else are the default alt deletes.

      • Willing Conscience (The Truths

        Syria shouldn’t be giving anything away to anyone, and Syria should be getting more in return from everyone, that’s what I think.

        international Cooperation is the key to economic recovery after the crisis ends, it’s definitely not the prospects of another war.
        Iran’s taking Turkey to the international court to try and force them to resume buying Iranian gas, and the Turks are still refusing.
        Iran is also taking the south Koreans to court trying to force them into repaying billions of withheld funds, and again they’re getting absolutely nowhere.
        So even if you’re not aware of it, Iran’s on the brink of economic collapse, they may have a lot of money in the bank right now, but it won’t last long at the rate they’re spending it.

        All the local families were out protesting again in Daraa yesterday and they were chanting this,
        “we want Iran and Hezbollah to get out of our neighbourhoods”,
        I listen to them and only to them, I don’t listen to you, or the Iranians, or the US, or the Russians, or the Turks, or the Israelis, or anyone else, just the locals, they’re the ones who have to live there, so why don’t you listen to them too.
        You accuse me of misinformation,
        “you are an disinfo bitch from where is basically irrelevant”
        But you don’t even care what the local who live there think or say, but luckily the Russians do, they’re in Daraa right now helping calm things down, they may have questionable loyalties when it comes to Turkey but where Iran’s concerned Russia’s advice to Syria has been excellent, unfortunately Assad doesn’t always listen to them.
        If you call advocating for the local population misinfo you’re way off the mark, misinfo is when you try to shut them up.

    • Cromwell

      Right so just do what the US Reich demands and no Syrian kids will suffer,well fuck them and fuck you.

      • Willing Conscience (The Truths

        There were more demonstrations in Daraa yesterday, and all the local families out on the streets were chanting this,
        “we want Iran and Hezbollah to get out of our neighbourhoods”,
        they’re the people I listen to, not to Russia, not Iran, not the US, not Israel, and not anyone else, I only listen to the people who actually have to live there in Deir ez Zor, Aleppo, Daraa, Quneitra and As Suwayda, so why don’t you.

        Telling the innocent families in Daraa, Quneitra, and As Suwayda to fight a war they don’t want to fight isn’t a noble virtue, it’s sinful, and Iran’s doing the very same thing to them the US does to others.
        So do you also condemn the south Koreans who complain about the US government having bases in south Korea, this is what they say to the US
        ‘you’re putting our families lives at risk just by being here, please get out, we don’t need or want you here’.
        I listen to them, just like I listen to the locals in Daraa, Quneitra, and As Suwayda.
        I advocate for the people who live there, not anyone else, Iran’s doing exactly the same thing that the US does, it’s telling the local what to do in their own country, and you’re barracking them on, so Fuck you too.

  • hvaiallverden

    Yeah, I guess Jens H. is an Norwegian sheep f…. and they, are remarkable, since they are not that good as the ordinary HasbaRats, but aligns more to the idiots we encounter from the Moronika, witch is bottom feeders, and like the most Southerness in Norway or Dane for that matter, dont change anything, the most covard loud mouth rats that exists on this planet, cocky as hell because of hanging around the skirts of the Bloshewiks and Trumpstein in the Imperial banana republic, but as an Norwegian, they are an bastard breed of qujones, and I know about that since I come from the North, little bitch, and the only thing they do in Norway is bragging about issues witch is close to nothing like their constant yapping about WW2, and their eh…. resistance, the boys whom hide in the forest and after the war ended had the balls to cut the hairs of women, that is what an southerner is, spineless and mindless qujones, and on top of it, made an movie about 1 resistance so called fighter, Max Anus, or something like that.

    Never bother to engage with them, in Norway the MSM is even worse than the imperial banana republic, unbelivable corrupt and rotten, and this freaks have been around for decades, I dont know what they call them selfs anymore, but you recongise them by their level of idiocy witch is of course impossible to even debate nor contradict, so just leave the little rat alone.
    Vikings, hehehe, yeah, thats not even true, and on top of it, the nations name comes from an Finnish price, called Norri witch was given to him by his father, the region called to day, westfold to telemark, thats why the name Normen, god they are brainwashed, we should have an messurment of stupidity we read every day and I bet the so called Norse would be on the top of the range with the even dumber Danes and slightly belowe the Yankikes.

    peace

    • Jens Holm

      Its all true. My source is hvaiallverden.

      He is a Same comming from Torsken not far from Gryllefjord being used as tourist attraction, where the tents are strange too:)

      All there, even the camels, are born and live with skimasks and wear nothing else. There are microskopes for their bananas. Its cool.