The gap between Syria’s official exchange rate and the rate in the parallel market has widened amid growing pressure on foreign currency demand, a persistent trade deficit, and rising energy import costs.
On Saturday, September 19, the Syrian pound traded at 135.75 pounds to the US dollar for buying and 136.50 for selling in the parallel market, widening the gap with the official rate to nearly 12%.
The latest movement in the pound comes amid persistent macroeconomic pressures, particularly Syria’s import bill, energy prices, and chronic trade deficit.
A week earlier, the currency market had shown relative stability, while the Central Bank of Syria kept its official exchange rate unchanged at 121.50 pounds to the dollar for buying and 122.50 pounds for selling.
Meanwhile, parallel market rates remained relatively stable at 131.75 pounds for buying and 132.25 pounds for selling in major commercial centers, including Damascus, Aleppo (northern Syria), and Idlib (northwestern Syria).
That fragile balance did not last, as subsequent trading widened the gap again. While the Central Bank continues to maintain an average official exchange rate of 122 pounds to the dollar for remittances and foreign currency transactions, the parallel market has moved further away from the official rate.
Trade Deficit Exceeds $3 Billion
Syrian economic and banking expert Dr. Ali Mohammad told Enab Baladi that the widening gap between the official and parallel exchange rates is closely linked to the broader economic situation, particularly the chronic trade deficit and the depletion of foreign currency.
Syria’s trade balance suffers from what Mohammad described as a “very large gap and deficit,” estimated at between $3 billion and $4 billion.
Mohammad noted the absence of precise figures on the final volume of imports, while exports reached about $2 billion in 2025, according to official data and statements by the Exporters Union when its council was established.
He said imports far exceed exports. Based on indicators from last year, when car imports alone were valued at $5 billion during the first three months, in addition to billions of dollars spent on other goods, Mohammad expects the trade deficit to remain persistent, automatically affecting the balance of payments.
He added that as long as the wide gap between exports and imports continues, the difference between the official and parallel exchange rates will also persist in the market.
Petroleum Imports Increase Foreign Currency Demand
Regarding another factor affecting the value of the pound, Mohammad pointed to higher overall government spending required by current economic conditions, particularly spending on petroleum products.
He said this expenditure has increased noticeably since late February because of external developments and higher global oil and gas prices.
The increase in spending has coincided with a significant decline in domestic energy production. Local production, for example, stands at between seven million and eight million cubic meters of gas per day, while daily demand reaches about 10 million cubic meters.
To cover the shortfall, Syria imports about 6.3 million cubic meters of gas through Azerbaijan and the Arab Gas Pipeline, with the quantities fully paid for, Mohammad said.
He added that the gas import bill alone amounts to about $140 million per month, equivalent to roughly $1.3 billion annually, alongside the cost of other daily shipments.
The direct gap between domestic production and actual demand is pushing economic authorities toward greater reliance on imports at high prices, requiring large allocations of foreign currency since February and March and placing direct pressure on the exchange rate.
Sharp Fluctuations Challenge Central Bank
Discussing the Syrian pound’s recent trajectory, Mohammad described the exchange rate movements as “dramatic.”
The dollar rose to around 14,000 to 14,200 old Syrian pounds before the currency recovered relatively to around 13,000 pounds to the dollar. The rate later exceeded 13,700 pounds and has recently settled at around 13,600 pounds.
Mohammad warned that demand for foreign currency remains much higher than available supply in the market, presenting the Central Bank of Syria with complex challenges as the gap between the official and parallel exchange rates continues to widen amid energy import requirements and government spending.