The Syrian pound surpasses the Iranian toman, Iraqi dinar and the Lebanese pound in terms of the exchange rate against the dollar, where the exchange rate of one dollar is about 620 Syrian pounds, while more than 1500 Lebanese pounds, and about 10,000 Iranian tomans, and about 1296 Iraqi dinars.
Syria has a number of advantages that help not to collapse exchange rates, the most important of which is the local agricultural and industrial production, which was relatively large before the war, fell at the height of the war in 2012 to 2105, and returned to recover after 2016 when the Syrian army began to recover and liberate the land The devaluation of the Lebanese pound is due to the years of the Lebanese civil war in which the Lebanese pound faced a collapse, as well as the Iraqi dinar, which collapsed due to Western sanctions and wars suffered by Iraq, while the causes of inflation in Iran New old western Iran, as well as the lack of its economy in the stage to a huge industrial base in terms of consumer products (as opposed to the military industries that are characterized by now).
Of course, the exchange rate does not reflect the real picture of the purchasing power of citizens in each country, because purchasing power is related to other factors, the most important of which is the size of income compared to the size of prices, and as a result of the war in Syria, income in Iraq, Lebanon and Iran remains relatively better than income in Syria. Market exchange rate per currency.
Prof. Basem Ghadir, in response to a question from Sputnik, said:
"This is due to several reasons: the diversification of the Syrian economy in terms of production capabilities, and the existence of diverse wealth such as oil, gas and others, as well as due to the Syrian economy has an integrated food basket covering a very high proportion of the daily food need of the Syrian people, which makes the flow cycle of the lira Syria is closely tied to basic food commodities and thus as long as basic food commodities are produced internally and marketed internally and not directly linked to the dollar, this enhances its value no matter how low its value against the dollar. It enhances the value of whatever decreased its value against other currencies. ".
Ghadir added: "In addition to that other basic commodities directly related to the life of the Syrian citizen was manufactured abundantly before the war and still like drugs …. Hence we know that the triangle of basic needs in wartime locally available in Syria food, medicine and fuel … "If the state could recover its other sources of energy, as happened with some gas fields … this would have led to a greater stability of the Syrian pound."
"As for the purchasing power of the Syrian consumer, it is relatively low compared to those of low-income people because of the government's inability to raise the ceiling of salaries and wages … But the diversity of the food basket and the availability of clothing of different quality enabled the low-income Syrian citizen to maintain the minimum necessary," he said. For the continuation of …. Syrian clothes produced domestically, for example, ranging from very low prices (on the stalls and low quality) to high prices commensurate with high incomes …. As well as the food commodities produced locally …. This gives the Syrian purchasing power moving space Controversial What happens to the purchasing power of consumers in neighboring countries. "
A group of Syrian economists uncovered the main reasons and determinants that affect the exchange rate of the dollar in Syria, the most important of which are speculation, demand for foreign exchange and various factors that we will list in this report.
A number of experts explained the determinants that play a role in determining the exchange rate of the dollar in Syria, the first of which is speculation, the manipulation of import licenses by traders who sell the central dollar instead of importing it, the monetary corruption and the transactions that generate amounts in which the dollar is purchased, and the factors of foreign direct investment. Economic growth rate, money supply, government spending, trade openness, real interest rate, external pressures, and monetary corruption.
Dr. Ghadeer pointed out in an earlier interview with Sputnik about the exchange rate determinants together: "These limits were summarized as many researchers see before the war eight parameters are (foreign direct investment, economic growth rate, money supply, government spending, trade openness, price The real interest, terms of trade, and political stability) In the light of the war, most of these determinants have been disrupted, and therefore reflected significantly on the exchange rate appreciation, and during the war on Syria fluctuated this price, to find it reached its highest point in the days Past and I find that there are limitations behind Exacerbated the price in several stages of the war, which in the past days, such as monetary corruption as I call with a purely political nature, which is trying to undermine any positive results to resolve the fighting in northern Syria and in Idlib, in particular because of its political weight is beset by several parties in the area of monetary and speculation. "
Dr. Ghadir added, "Of course, there should be a decline in the exchange rate as required by the normal determinants of the exchange rate, such as the re-production cycle of many of the joints of the state that were completely out of control … But suddenly the opposite happens, and we can not ignore the high intensity of the blockade and pressure The American commercial and financial activity on any economic activity related to Syria in parallel with the arms of monetary corruption that I referred to, which the anti-Syrian forces politically and militarily to strengthen and support the limits. "
Dr. Ghadir concluded, "Finally, the political stability at this stage is the most important determinants of all because it is the only one able to curb the internal and external arms of monetary corruption, which gives greater room for calm to the cowardly capital as we call it and open up investment gaps other than gambling at the exchange rate! Every recession of the suffocating economic blockade, as well as the restraint of foreign arms that will automatically shrink its role with each new political settlement. "