Syria Faces Economic Struggles with Less Than $200M in Foreign Reserves
Syria’s temporary prime minister, Mohammed al-Bashir, said the central bank’s foreign currency reserves are “very low.” Current and former officials said most of the reserves have been used by the Bashar al-Assad government to pay for food, fuel, and the war. According to sources, only about $200 million is left, Reuters reported.
The Syrian pound has lost value
The Central Bank of Syria changed the exchange rate of the Syrian pound to 15,075 per US dollar, up from 12,562 per dollar earlier this week. This was the first official update to the exchange rate since Assad was removed from power on December 8.
During Assad’s rule, the government reportedly used several different exchange rates for various purposes, like budgeting, money transfers, and transactions with the UN. Besides the official rates, there was also a black market where trading currency could lead to imprisonment.
On December 5, the last day of trading under Assad, the exchange rate for banks was 13,668 Syrian pounds per US dollar, while the government budget used 12,562 per dollar.
Reports say the Central Bank of Syria still has about 26 tons of gold, the same amount it had in 2011 when the civil war began. According to the World Gold Council, Syria’s gold reserves in 2011 were valued at $2.2 billion at today’s prices.
Surprising Fact
Videos of Syrians saying the word “dollar” have gone viral on social media. This is noteworthy because, during Assad’s rule, even mentioning the word was risky.
Lifting Sanctions
The UN Special Envoy for Syria, Geir Pedersen, has called for strong support to help Syria deal with its huge challenges, including the removal of sanctions.
On Monday, UN humanitarian aid coordinator Tom Fletcher met with Syria’s new leader, Ahmed Al-Sharaa, and Prime Minister Al-Bashir to discuss ways to increase humanitarian aid in the country.
After the meeting, UN Secretary-General António Guterres expressed his support for the new government’s promise to protect civilians and aid workers.
International Recognition
Turkish President Recep Tayyip Erdoğan has called for a government in Syria that includes all groups and asked the European Union to help Syrians return home after fleeing during the 13-year civil war.
Turkey supports the armed opposition in Syria, especially the group Hayat Tahrir al-Sham, led by Al-Sharaa, which recently overthrew the Assad government.
At a press conference with European Commission President Ursula von der Leyen in Ankara, Erdoğan agreed on the need for a broad-based administration in Syria.
There have been other signs of growing international support for the new Syrian government, including:
- EU foreign policy chief Josep Borrell and Ursula von der Leyen announced that the European Union will talk to Syria’s new leadership and reopen its mission in the country.
- Syria’s news agency (SANA) reported that Al-Sharaa met with a British Foreign Ministry delegation, calling for better relations and the removal of sanctions to allow refugees to return home. Photos showed Al-Sharaa meeting Western officials, his highest-level contact since his group came to power.
- France announced it had reopened its embassy in Damascus after 12 years and urged Syria’s transitional leaders to ensure an inclusive political process.
- Italy’s Prime Minister Giorgia Meloni said her country welcomes the end of Assad’s regime and is ready to engage with Syria’s new leadership.
Published: 18th December 2024
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