U.S. Sanctions Relief on Syria Offers Fleeting Boost to Syrian currency, Fails to Ease Economic Strain
Syrian lira sees brief rise after US sanctions ease, but inflation persists. Prices dip slightly for some goods, but economists warn deeper reforms and investments are needed for real economic recovery.
By Ahora Qadi
Erbil (Kurdistan24) – The recent partial lifting of U.S. economic sanctions on Syria has sparked a mild and temporary appreciation of the Syrian lira, yet the impact has fallen short of expectations on the ground, where inflation and consumer hardship remain deeply entrenched.
Following the announcement from the U.S. Treasury, the Syrian lira gained modest ground against foreign currencies. However, this appreciation failed to translate into significant relief for consumers or stimulate a noticeable shift in the overall market environment.
Speaking to Kurdistan24 from Damascus, shopper Alia Youssef remarked, “Everything is available in the market, but prices have dropped by no more than five percent. The increase in prices remains steep compared to people’s incomes.”
Mixed Effects on Essential Goods and Imports
Mohammed Asmar, who owns a grocery store in the capital, observed a selective easing of prices in a narrow range of basic commodities. “The decline in the dollar helped open the door to imports and competition, which lowered prices for some raw materials,” he noted. “But clothing prices are still sharply high.”
Economists Urge Broader Reform and Investment
Experts caution against viewing the currency rebound as sustainable, underscoring the need for deeper reforms to revive Syria’s battered economy. The market, they argue, requires a steady influx of domestic and foreign investments to spark meaningful change.
Khaled Ali, a currency exchange dealer in Damascus, told Kurdistan24: “The improvement in the lira’s exchange rate was very limited. What the market truly needs are long-term investments—local, foreign, and Arab—to spark a real shift. That will take both time and sweeping reforms.”
Structural Challenges Remain Despite Policy Shift
Observers broadly agree that the partial sanctions relief may mark the beginning of a financial de-escalation for Damascus, but stress that it remains insufficient to reverse the entrenched structural weaknesses of Syria’s economy, which continues to suffer from rampant inflation, rising unemployment, and chronic liquidity shortages.
While many Syrians await further developments that could ease daily economic burdens, hopes now rest on the adoption of broader policies focused on stimulating production, attracting investment, and lightening the financial strain on ordinary citizens.
Kurdistan24 corresponded in Damascus contributed to this report
