Monday, January 13, 2025

Syrian currency shows unusual stability against the dollar amid leadership transition

Money & Market


The Syrian pound, which has faced significant depreciation in recent years due to economic instability and sanctions, displayed unexpected resilience against the US dollar following reports of President Bashar al-Assad’s departure from office.

In a country where political upheaval often sends shockwaves through its fragile economy, the Syrian pound held steady, trading at levels not seen since before the deepening of the financial crisis in 2020.

Currency traders in Damascus reported a surprising sense of optimism in the black-market rates, which are often seen as more reflective of the real economy than official rates.

Damascus currency traders cited exchange rates between 12,500 and 10,0000 on Saturday, a wide spread of between 20 per cent and 50 per cent stronger than the previous rate of 15,000, with high volatility in the market.

“This is the first time in years we’ve seen the pound strengthen against the dollar,” said Ahmed al-Najjar, a currency dealer in the capital. “It seems people are hopeful for political change and an eventual lifting of sanctions.”

Political Background

The reported ousting of Assad comes after months of growing dissent and international pressure. The announcement has sparked speculation about Syria’s future, with opposition groups and foreign powers already maneuvering to influence the next phase of governance.

Observers believe the pound’s recent firmness could signal market confidence in a more stable and open economic direction under potential new leadership. However, analysts warn that Syria’s recovery will depend heavily on how the transition unfolds and whether the country can secure international support.

Economic Outlook

Syria’s economy has been battered by over a decade of civil war, widespread sanctions, and a humanitarian crisis affecting millions. Before recent events, the Syrian pound had reached record lows, with rampant inflation making basic goods unaffordable for many citizens.

Experts caution that the pound’s temporary stability may not last without significant economic reforms. “A leadership change alone won’t fix Syria’s problems,” said economist Rana Shami. “What’s needed is a comprehensive rebuilding plan, removal of sanctions, and investment in infrastructure.”

Reactions on the Ground

In Damascus, the mood was cautiously optimistic, with many Syrians hoping that this shift could bring relief to their daily struggles. Others remained skeptical, fearing prolonged instability as factions vie for control in a post-Assad Syria.

“We’ve seen leaders come and go in the region, and it’s always the people who suffer the most,” said Samira, a shopkeeper in the Old City. “I hope this time will be different.”

The international community has yet to officially confirm or respond to the leadership transition. Still, regional allies and adversaries alike are closely watching developments that could reshape Syria’s future and, by extension, the broader Middle East.

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