The value of the Syrian pound against the US dollar decreased by a percentage that reached 113.5% on an annual basis during 2023, as the last six months of the year witnessed significant changes in the value of the pound.
The pound’s decline against the dollar in 2023 is the largest ever recorded in its history.
Last July, the pound experienced its greatest change in value, registering a decline of over 37% on a monthly basis, from an exchange rate of 9,025 Syrian pounds against the dollar at the beginning of the month to 12,400 pounds by the end of the month.
The dollar selling price on Monday, December 25, is 14,200 Syrian pounds, while on the first day of the year, it was 6,650 pounds, according to the S-P Today website, which specializes in monitoring the Syrian pound’s exchange rate against foreign currencies.
The pound’s 113.5% decrease over one year has had a clear impact on the livelihoods of Syrian people in areas that rely on the pound as the primary currency due to the almost daily price hikes for all essential goods and commodities.
During the current year, the lowest value of the Syrian pound against the dollar was on August 16th, reaching 15,500 pounds, the day after a monthly salary increase of 100% in Syrian pounds was announced.
After the increase, the minimum salary equated to approximately $13.3 compared to the exchange rate at that time.
Following the increase, the demand for livelihood necessities doubled, affected by the significant price increase accompanying the salary raise, as the average cost of living rose to over 10.3 million Syrian pounds.
Meanwhile, the minimum cost of living increased to about six and a half million pounds, according to the Kassioun Index.
180% decline in official exchange rate
The value of the Syrian pound declined in the official bulletins issued by the Central Bank of Syria (CBS) by a percentage that reached 180.8% as of December 23.
According to the first bulletin for the current year, titled “Banks and Exchange Rate,” the dollar exchange rate reached 4,522 Syrian pounds, while according to the latest bulletin issued on December 21, the dollar exchange rate reached 12,700 pounds.
The food basket price in Syria increased by 100% during the first nine months of the current year, triple the amount compared to the previous year, according to a report by the World Food Programme (WFP).
The UN organization stated in a report early in November that the food basket cost rose in September to 938,000 Syrian pounds, equivalent to $67, based on the exchange rate in the black market at that time.
Moreover, the value of external remittances, which Syrians abroad usually send to their families to help cover their expenses, was also affected by the general economic situation and the high inflation rates in most refugee countries, forcing some to reduce the value of the monthly remittances they send to their families.
Economic researcher at the Omran Center for Strategic Studies, Mohammad al-Abdullah, previously stated to Enab Baladi that the Syrian economy is clearly deteriorating. Wages are far below the necessary minimum amount to live amidst significant inflation values and a significant decline in the pound against foreign currencies, with no precise expectations of further deterioration.
Al-Abdullah believes that any increase in the value of salaries will only cover a small portion compared to the size of the needs, as the regime’s government is incapable of approving a “substantial” increase that would significantly impact citizens’ lives.
This forced the government in the recent period to resort to “palliative” measures in the form of grants for civilian or military employees and retirees to “placate” them, according to the researcher.