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Eight years after the beginning of the war, Syria, subjected to European and international sanctions, is undergoing a serious economic and financial crisis. The Syrian pound fell on Tuesday, December 3, at its lowest price on the black market: 1,000 pounds for a US dollar, while the official rate posted on the site of the Central Bank of Syria is 434 pounds.
From our correspondent in Beirut ,
In recent years, Lebanon has become the economic heart of Syria. Syrian businessmen were using Lebanese banks to circumvent the sanctions that pulled the Syrian banking sector out of the international financial circuit. They placed billions of dollars in Lebanese banks that allowed them to trade and import many goods that were being shipped back to their country.
It was also through the Lebanese banks that part of the funds sent by Syrian expatriates to their families remained. Since early November, Lebanese banks have imposed strict restrictions rationing withdrawals in dollars. Remittances are reduced to small amounts and cash withdrawals at ATMs or ATMs are limited.
Currency transfers heavily impacted by the Lebanese crisis
The hundreds of thousands of Syrians working in Lebanon were a major source of green market supplies for the Syrian market. These flows have drastically declined since the start of the dispute on October 17 , increasing demand on the dollar in Syria, and causing the value of the Syrian pound to fall. It is exactly the same scenario that occurred in Lebanon.
The shortage of dollars has an impact on the importation of various products. Imports of basic necessities such as gasoline, flour and medicines will inevitably decline in Lebanon. Some of these products were legally introduced into Syria and another part was smuggled.
These legal or illegal moves to Syria have automatically decreased, causing shortages, and consequently, higher prices and erosion of the purchasing power of Syrians. The Lebanese are housed in the same boat.