Continued rise in dollar exchange rate in Syria will not stop: Expert

Economic expert George Khazam said that the continued rise in the dollar exchange rate in Syria will not stop.

This is due to several reasons, most notably the 200% increase in salaries for more than 700,000 employees, retirees, and military personnel, which has led to a monthly accumulated increase in the market of approximately 600 billion Syrian pounds, without a corresponding increase in supply from production or dollars. This is necessary to achieve a balance in the market between the amount of Syrian pounds in circulation and the amount of domestic goods and dollars.

Khazam added in a recent post on his personal Facebook page that the decision to print a new currency and remove two zeros from the Syrian pound has prompted many to exchange the Syrian pound for dollars instead of the new pound that will be introduced to the market at the end of this year.

This is due to fear of being questioned about the source of the funds, especially illegal funds and money exchangers inside and outside Syria who are used to speculate on the Syrian pound, and fear of a ceiling on exchanges imposed by banks.

He added that the gradual transition to a free market is also one of the main reasons for the continued rise in the dollar exchange rate in the Syrian market. He pointed out that the destructive importation of all goods, including bottled water and salt, has been permitted in an economically destructive manner. This has led to increased demand for dollars and a decline in production.

He also pointed out that the import of cars worth approximately $3.5 billion played a significant role in increasing demand for dollars and, with it, the rise in the exchange rate, when importers began to repatriate their capital in dollars.