Events in Syria are unfolding at a rapid pace, casting a shadow over citizens and their livelihoods related to the exchange rate and the value of the Syrian pound alongside battlefield news.
In the capital, Damascus, the availability of the dollar is decreasing to its lowest levels, while the pound is experiencing a new collapse, exceeding 20% in recent days, amidst multiple exchange rate bulletins and fluctuating prices sometimes within a single day.
This comes amid the expansion of Syrian opposition forces during the "Confronting the Aggression" operation, moving from Idlib to Aleppo, and today taking control of Hama and preparing to head towards Homs.
In recent days, the decline in electrical supply to areas of Damascus and its countryside has continued, with power cuts in the capital at one hour of electricity available and five hours cut, while in other neighborhoods it’s one hour on and eleven hours off. In the countryside of Damascus, it’s half an hour on for five and a half hours off, and in some areas, it's one hour of electricity every 24 hours.
There are multiple exchange rate bulletins within the Syrian market. The central bank currently issues two bulletins: the exchange and currency bulletin (13,668 Lira per dollar) and the official bulletin (12,562 pounds per dollar), having abandoned previous bulletins designated for payment alternatives, customs, and others.
The price in the parallel market (between 16,800 and 17,500 pounds per dollar in Damascus) remains the primary regulator of the market, with other prices specific to sales models; for instance, the "goods dollar" exceeds the trading value in the parallel market, as does the dollar for car parts and maintenance, while the "smoking dollar" or the dollar for technological devices is close to the parallel market price.
Retail traders justify that the price they deal with results from fluctuating costs, rising prices of incoming supplies, and fears of their interruption. For example, a commodity priced at 15,000 pounds before the new wave of collapse (when the parallel market price was 14,600 pounds per dollar) will be priced by the seller at 18,000 pounds at the beginning of the decline in the pound's value when the price of one dollar reached 16,000 pounds. Thus, the goods dollar equals 18,000 pounds after it was 15,000, and in both cases, the trading price exceeds.
These differences lead to a lack of clarity regarding the actual price and allow speculators to manipulate the market to ensure their profits, leading to further price increases, a burden paid by families amidst the weak purchasing power of individuals and suppliers' reluctance to distribute goods.
The tension resulting from the rapid developments manifests through several factors in the market:
- An increased demand for essential goods, such as sugar, oil, lentils, and others. Although the market has not seen a shortage of any essential materials, price increases are evident (a kilogram of sugar has reached 15,000 pounds in popular markets like Bab Srija, after being 11,000 pounds).
- A stagnation in large transactions such as buying properties and cars, leading to a decline in trading in large sums.
- Increased demand for dollars due to fears of freezing financial blocks in pounds, which leads to further depreciation of the national currency.
Um Khaled, a resident of the countryside of Damascus, speaks to Al Jazeera Net about her provisioning of essential foodstuffs: "I bought 2 kilos of rice, lentils, and sugar, and two liters of cooking oil, for around 150,000 pounds at the beginning of the week. Today, their price is at least 200,000 pounds."
Um Khaled's family consists of three members, and she relies on half-wholesale shops for her household needs. According to her, "There’s a way to manage, and the materials are available in reasonable quantities, remaining more economical than grocery stores and small shops. These shops tend to display merchandise in small quantities, and their prices are fixed."
Price Increases
Regarding Maher, the thirty-something young man who works as a hall manager in a restaurant in the capital, Damascus, he said, "We raised prices before the recent events; there is always a price increase." When asked about the reasons for this, he stated, "As winter approaches, the number of customers decreases, and operational costs such as generators and heating increase, so prices are raised to avoid restaurant losses."
When questioned about the suppliers of goods, the young man confirmed the continuous supply of goods, albeit with a slight increase in prices. He said, "The trader takes the average price at which he sold a day or two ago and the expected price at which he will buy the next batch. Based on that, he determines today's price, or he hoards certain materials that he fears may be out of stock, for example, the price of all types of chicken has increased by 2000 to 3000 Syrian pounds per kilo from one day to the next."
It is noteworthy that official Syrian authorities specify prices of fruits and vegetables as well as meats in their bulletins, but these prices are not adhered to, except by public consumer institutions, which determine the goods allowed for purchase by citizens based on the smart card mechanism. Meanwhile, there are official bulletins being adhered to, with strict measures against violators, most notably the craftsman's bulletin for the price of gold and drug prices.
Gold and Drug Prices
Regarding gold, the price is directly linked to the dollar price, and jewelers can impose their own prices without publicizing them by increasing the cost of craftsmanship. These costs are subject to the jeweler's discretion, and the percentages specified by the union are not applied.
The issue of medication affects a much broader sector of Syrians, of course. With the halt of imports from the pharmaceutical factories in Aleppo and Hama, warehouses have clearly reduced their supply to pharmacies. Pharmacist Leila spoke to Al Jazeera Net about the state of medication: "The situation hasn't reached the level of disaster yet, but there is the beginning of a crisis. It is usual for warehouse representatives to supply pharmacies with a certain frequency, and typically there is some flexibility in paying dues monthly or weekly."
In recent days, visits from representatives have decreased, and there is insistence on immediate payment for each order, which reduces the quantity of available medications in pharmacies. She adds that everyone (factories, warehouses, and pharmacists) is waiting for a decision to raise the price of medications. Even until that point, some pharmacies may claim that certain items are unavailable. The pharmacist said, "There is a factor related to essential medications like those for the heart and diabetes and eye drops, so some patients seek to secure their medication for a longer duration. Here, it is preferable for the pharmacist to commit to selling only one box to ensure the availability of medication in pharmacies."
Fuel Prices
Finally, the capital and its countryside are suffering from rising fuel prices and delayed deliveries of gasoline shipments for vehicles according to the smart card system. Drivers resort to buying gasoline at black market prices or "renting" smart cards for private cars.
Abu Ismail, who works as a taxi driver between the capital and a nearby suburb, stated, "I am currently forced to buy from plastic jugs on the roads. I had two additional gasoline cards, at least I could secure gasoline from the gas stations." The jugs sold on the roads are not reliable and can damage the vehicle. He mentioned buying a liter on Tuesday for 23,000 Syrian pounds. According to Abu Ismail, cardholders demand 200,000 or 300,000 Syrian pounds for a single refill in exchange for letting him use the card for his vehicle. The driver pays the full gasoline price at the gas station according to the official price, which means the liter costs him about 20,000 Syrian pounds.
As for the official stance on developments, Ghazwan Al-Halabi, head of the Damascus Chamber of Industry, stated to the Syrian newspaper Al-Watan that the rise in the dollar price is illusory and a result of the black market, while imports remain committed to the official price bulletin, confirming that there is no justification for raising prices.
Source: Al Jazeera
