DamascusEvents in Syria are accelerating at a rapid pace, and this is casting a shadow over the citizens and their lives related to the exchange rate and the value of the Syrian pound, in addition to field news and map updates. In the capital, Damascus, the dollar supply drops to its lowest levels, while the lira is witnessing a new collapse of more than 20% in recent days. Amidst the multiplicity of bulletins and the price sometimes varying within one day. This comes in light of the expansion of the forces of the Syrian opposition factions as part of the “Deterring Aggression” operation from Idlib to Aleppo, then their control today of Hama and their preparation to head towards Homs.
There are many currency exchange bulletins within the Syrian market. The Central Bank currently issues two bulletins, the Exchange and Exchange Bulletin (13,668 liras per dollar), and the official bulletin (12,562 liras per dollar), after abandoning the bulletins that were issued in previous years dedicated to payment of fees, customs, and others.
The parallel market price (between 16,800 and 17,500 pounds per dollar in Damascus) remains the primary regulator of the market, with the presence of other prices related to sales models. For example, the “goods dollar” exceeds the trading value in the parallel market, as well as the dollar for car parts and maintenance, and the “smoking dollar” or technological devices is close to the price in the parallel market.
Retail traders justify that the price they deal with is a result of the price change, the rise in the prices of upcoming supplies, and the fear of their interruption. For example, a commodity priced at 15,000 liras before the new wave of collapse (when the parallel market price was 14,600 liras per dollar) will be valued by the seller at 18 thousand liras with the beginning of the decline in the value of the lira when the price of one dollar reached 16,000 liras. Therefore, the dollar of goods is worth 18 thousand liras instead of 15 thousand, and in both cases it exceeds the trading price.
These differences lead to ambiguity of the actual price, and speculators control the market to ensure their profits, and thus further rise in prices, which people pay for in light of the weak purchasing power of the individual and the reluctance of suppliers to distribute goods.
Tension as a result of rapid developments is reflected in several factors at the market level:
- The demand for essential commodities, such as sugar, oil, lentils, and others, has increased, and although the market has not witnessed a disruption of any of the basic materials, the rise in prices has been significant (a kilo of sugar has reached 15 thousand liras in popular markets such as Bab Sreja, after it was 11 thousand liras).
- Stagnation of large transactions such as purchasing real estate and cars, which leads to a decrease in the circulation of large amounts.
- Increased demand for the dollar for fear of freezing the financial blocs in the lira, which would lead to a further decline in the value of the national currency.
Umm Khaled, who lives in the Damascus countryside, talks to Al Jazeera Net about her supplies of basic foodstuffs: “I bought 2 kilos of rice, lentils, sugar, and two liters of frying oil, for about 150,000 liras at the beginning of the week. Today, their price is at least 200,000.” Umm Khaled’s family consists of three individuals, and she relies on semi-wholesale stores for her household needs. According to her words, “There is a way to be careful, and the materials are available in reasonable quantities, and they remain more economical than groceries and small stores. These stores deliberately offer the goods in small quantities, and their prices are fixed.”
High prices
For Maher; The young man in his thirties, who works as a lounge manager in a restaurant in the capital, Damascus, said, “We raised prices before the recent events. There are always price increases.” Regarding the reasons for this, he says: “With the advent of the winter, customers decrease, and operating costs increase, such as generators and heating, for example, so prices are raised.” So that the restaurant avoids loss.
When asked about the suppliers of the goods, the young man confirmed the continuity of downloading the goods, with a slight increase in prices. He said: “The merchant takes the average price at which he sold it a day or two ago, and the price at which he is expected to buy the next batch, and accordingly he determines today’s price, or monopolizes some Items that are feared to be cut off from the market, for example all types of chicken, the price of a kilo increased from 2,000 to 3,000 from one day to the next.”
It is worth noting that the Syrian official authorities specify in their bulletins the prices of fruits and vegetables, as well as meat, but these prices are not in effect, with the exception of public consumer institutions, which specify the goods that citizens are allowed to purchase according to the smart card mechanism, while there are official bulletins that are implemented and are strict about violators, the most prominent of which are: Artisans bulletin for the price of a gram of gold, and medicine prices.
Gold and medicine prices
As for gold, the price is directly linked to the price of the dollar, and the goldsmiths are able to impose their price without announcing it, by raising the cost of goldsmithing wages. These wages are subject to the goldsmith’s discretion, and the work is not done at the rate set by the union.
The issue of medicine affects a wider sector of Syrians, of course, and with the cessation of imports from pharmaceutical factories in Aleppo and Hama, warehouses have clearly reduced their imports to pharmacies. Pharmacist Laila speaks to Al Jazeera Net about the situation of medicine:
“The issue has not reached the point of disaster. There is the beginning of a crisis. It is usual for warehouse representatives to supply the pharmacy according to a certain frequency, and usually there is the convenience of paying the dues monthly or weekly.
In recent days, the visits of representatives have declined, and there is an insistence on immediate payment for each order, and this reduces the amount of medicines available in the pharmacy.” She adds that everyone (laboratories, warehouses, and pharmacists) is waiting for a decision to raise the price of medicines,
Even so, it is possible for some pharmacies to claim that some items are not available. The pharmacist says: “There is a factor related to sustainable medications, such as heart and diabetes medications and eye drops. Some patients seek to secure their medications for a longer period, and here
It is advisable for the pharmacist to commit to selling one package to ensure the availability of the medicine in pharmacies.”
Fuel price
Finally, the capital and its countryside suffer from a rise in the price of fuel, and a delay in the arrival of gasoline shipments to cars due to the smart card mechanism. Drivers resort to buying gasoline at the black market price, or “renting” smart cards for private cars.
Abu Ismail, who works in a taxi between the capital and one of the nearby suburbs, says: “I am currently forced to buy plastic grackles on the roads. I had two additional gasoline cards, at least I guarantee gasoline from gasoline tanks.”
The packages sold on the roads are not guaranteed and damage the car’s equipment. On Tuesday, I bought a liter for 23,000 liras.” According to Abu Ismail, card owners charge 200,000 or 300,000 per package, in exchange for granting him the card.
For his car, the driver pays the full price of gasoline to the gas station according to the official price, so a liter costs him approximately 20 thousand liras.
As for the official position on the developments, the head of the Damascus Chamber of Industry, Ghazwan Al-Halabi, stated to the Syrian newspaper Al-Watan that the rise in the price of the dollar is imaginary and a result of the black market, while imports are still committed to the official bulletin, and he stressed that there is no justification for raising prices.
