(Zaman Al Wasl)- The United States is warning businesses against participating in an annual trade fare this week in the Syrian capital, Damascus.
The U.S. Embassy in Syria, which closed the mission early on in the country's eight-year civil war, posted a statement on Twitter ahead of the exhibition, which is expected to open Wednesday, AP reported.
The statement says anyone doing business with President Bashar Assad's government will expose themselves to the possibility of U.S. sanctions.
About 40 businessman from the United Arab Emirates (UAE) have arrived to Damascus this week to participate in the regime's trade fare, source told Zaman al-Wasl.
It says it's "unacceptable and inappropriate" for businesses and individuals to participate, particularly at a time when Assad's government, aided by allies Russia and Iran "are attacking innocent civilians."
The Damascus International Fairgrounds near the Damascus airport are hosting the fair. It used to be a high-profile event before the war started in 2011, attracting major investors.
-Recession-
Most merchants in Damascus have been complaining of a recession hitting their stacked merchandise, a Syrian business website reported.
Some say it is the usual post-Eid al-Adha recession. However, others believe that this is due to the high cost of most consumer goods during the last month, with rates ranging between 10% and 15%, with a fall in the exchange rate of the Syrian pound to unprecedented levels, according to Eqtsad.
Pro-regime media outlets say merchants are warning of a deep recession would hit importers and wholesalers.
In their complaint, they emphasized that big traders refuse to reduce prices, although their goods may be damaged in their warehouses. Instead, they are offering to lend their goods to retailers through credit, keeping them from being dragged into this predicament. The merchants, however, seek to dispose of their goods in any way for fear of spoiling.
-Pound Hollowing-out-
Meanwhile, the hollowing-out of the Syrian currency’s value has been continued as trading against the US dollar reached the highest rate in three years in blackmarket, according to exchange dealers.
Trading at 47 Syrian liras to the US dollar in 2011, it's currently going for 625 Syrian liras to the greenback.
Syria's currency has crashed as the country's eight-year-long war rages on.
The rapid depreciation of the Syrian pound has caused a further decline in the living standards of ordinary Syrians and threatens the continued functioning of what remains of the state, according to Carnegie Think Tank
Aron Lund in a report published by the veteran Middle East Center in 2016 says: If the formal economy proceeds to break down in more fundamental ways than it has already, if the SYP loses even more of its purchasing power, and if state institutions cede ground to private charities, the black market, and militias, then the Assad regime will continue to evolve from an institutional state apparatus into a coalition of warlords. While tragic for Syria, such a development is especially dangerous for Assad himself, since his long term strategy is predicated on an ability to present himself as the last barrier against a permanent state collapse in Syria.
Reversing the decline of the government’s financial writ is therefore just as important to Bashar al-Assad as winning the battles on the ground. So far, he has seemed considerably more successful at the latter than the former.
Eight years of war in Syria have killed 560,000 people and driven half the pre-war population of 22 million from their homes, including more than 6 million as refugees to neighbouring countries.
Zaman Al Wasl, Agencies
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