The economic hardships of Syrians continued in August with the steady rise in the prices of basic items and the decline in the purchasing power of citizens. The regime lifted subsidies from new sections of society and there was a further decrease in the value of the Syrian pound against the dollar. Foreign investment was absent. Allies of the regime, namely Iran and Russia, continued to show lack of interest in the Syrian market and in supporting the regime, except for Iranian oil supplies — under the provisions of the Iranian credit line agreement — which alleviated the energy and fuel crisis to some extent.
Regarding the monetary situation, the Syrian pound lost more of its value against the dollar. The exchange rate of one dollar was 4200 pounds at the beginning of August and 4465 by the end of the month. In one year, the Syrian pound lost a quarter of its value against the dollar, a drop of 970 pounds since August 2021, in a clear indication of the regime’s inability to stop this decline and the unwillingness of its allies, who are not interested in taking further risks, to help. Syria’s allies see such support as futile and useless especially when taking in account the international sanctions on Tehran and Moscow and the costs of the invasion of Ukraine on the Russian economy.
The economic hardships of Syrians also continued in the areas controlled by the Syrian opposition and Turkey as well as in the areas controlled by Kurdish militias. This is despite the relative stability in the prices of basic items. Job opportunities remain scarce, the purchasing power of Syrians is weak, and there is a decline in UN and international support for local organizations and bodies working in these areas. The refugee and the displaced crises have also worsened.
The following report reviews the most important economic developments in Syria in August 2022.
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