The economic landscape in Syria has undergone profound changes, particularly in opposition-held areas where the Turkish lira has become a preferred medium of exchange. Since the Syrian conflict escalated in 2011, the national currency has faced unprecedented devaluation, leading to widespread adoption of alternative currencies. In regions like Idlib and northern Aleppo, residents have increasingly embraced the Turkish lira as a more stable option for daily transactions.
From its initial stability to its dramatic decline, the Syrian pound's journey reflects the broader turmoil affecting the nation. Initially trading at approximately 50 pounds to the US dollar, the currency plummeted due to years of conflict, economic collapse, and international sanctions. By 2024, the exchange rate had soared past 15,000 pounds to the dollar. This downward spiral was exacerbated by the Caesar Syria Civilian Protection Act in 2020, which curtailed foreign investment and reconstruction aid. Despite government efforts to impose controls, the Syrian pound continued its freefall, prompting the search for more reliable alternatives.
The integration of the Turkish lira into local economies has brought both advantages and challenges. While it offers greater financial stability and helps mitigate the effects of hyperinflation, adopting the lira introduces complexities such as fluctuations tied to Turkey's economy and shortages of small denominations. Additionally, the dual-currency system undermines Syria's monetary sovereignty, creating inconsistencies in pricing and wage disparities. These issues highlight the need for comprehensive economic reforms that address not only currency stabilization but also the restoration of public trust in formal financial systems.
To secure a brighter financial future, experts advocate for measures that strengthen the Syrian economy through increased local production and improved management of foreign reserves. Economist Osama Al-Hassan suggests that reviving the Syrian pound requires a balanced approach, including encouraging foreign remittances and regulating the exchange market. Emphasizing the importance of fostering confidence in the national currency, he stresses the necessity of avoiding overly restrictive policies on the use of the Turkish lira. Ultimately, achieving long-term economic stability demands innovative solutions that reflect the evolving realities within Syria's diverse regions.