Economic circles have recently witnessed an official move aimed at restructuring and reshaping joint business councils with a number of countries. This step, which comes as part of efforts to strengthen trade ties, raises fundamental questions among the Syrian public about the true economic feasibility of these councils, and the extent of their direct impact on the daily lives of citizens, their purchasing power, and price stability in the local market.
Business councils are platforms that bring together businesspeople and investors from two or more sides. Their primary function is to overcome commercial obstacles and explore new investment opportunities. In the Syrian context, these councils are seen as a potential tool for opening export channels for Syrian products and facilitating the import of raw materials and essential goods that citizens need at prices that may be more competitive.
Impact of Business Councils on the Exchange Rate and the Local Market
Analytically, the exchange rate in Syria is closely linked to the volume of trade and the trade balance. When these councils succeed in increasing Syrian exports, this means a larger inflow of foreign currencies into the country, which may contribute to alleviating pressure on the Syrian Pound. Currently, the exchange rate fluctuates at levels that require a delicate balance, and any organized commercial activity may help stabilize the local currency, which is touching levels of approximately 14,000 to 15,000 Syrian Pounds per US Dollar in the parallel market.
For the average citizen, the stability of the exchange rate is the key to the stability of food and consumer goods prices. The local market relies heavily on imported materials, or raw materials used in local industry. And if these councils succeed in securing direct trade deals at preferential prices, we may see a decrease or at least stability in the prices of materials such as oils, sugar, and rice, which constitute a significant burden on the monthly household income.
The Relationship Between Trade Exchange and Gold Price Stability
Gold in Syria is considered the primary safe haven for savings. Its price locally is affected by two factors: the global price and the exchange rate of the Syrian Pound. With the price of a gram of 21-karat gold reaching levels exceeding 1,000,000 Syrian Pounds, citizens are monitoring any economic development that might affect the value of their savings. Activating trade through business councils may reduce the intensity of speculation on hard currency, which indirectly reflects on the stability of gold prices locally.
Conversely, the improvement of investment channels through these councils may encourage capital to move towards productive projects instead of hoarding in gold or currencies. This shift, if it occurs, will lead to the creation of new job opportunities for youth, increase the pace of local production, which reduces reliance on costly imports and strengthens the national economy from within.
Available Opportunities: Increasing Exports and Securing Raw Materials
The main positive aspect in the formation of these councils lies in the possibility of marketing the surplus of Syrian agricultural and industrial production. Syrian citrus, olive oil, and textiles possess a competitive advantage in foreign markets. The success of the councils in opening new markets means an increase in the income of farmers and small producers, and this in turn stimulates the economic wheel in rural areas and industrial cities.
This step is also expected to contribute to facilitating access to modern technology and equipment for Syrian industrialists. The local industry currently needs to modernize production lines to reduce costs and increase quality. When production costs decrease, the final product becomes cheaper for the local consumer, which increases their ability to secure their basic needs with less money from salaries that no longer keep pace with the global cost of living.
Challenges and Obstacles: Will these councils actually succeed?
Despite the optimism surrounding these steps, there are significant challenges that may limit the effectiveness of these councils. The first of these challenges is bureaucracy and administrative complexities that investors from both sides may face. Without flexible and clear investment laws, these councils may remain mere ceremonial facades without a real impact on the ground. Furthermore, global shipping and logistics costs remain high, which adds additional burdens to the final price of the commodity.
On the other hand, there is the challenge of competitiveness; competition in global markets is fierce, and the Syrian product needs support in areas such as packaging and adherence to international standard specifications. Furthermore, the scarcity of energy sources and the fluctuation in their availability to industrialists raise production costs, which may sometimes make exporting difficult or economically unfeasible, negatively impacting local prices, which may rise to compensate for export losses.
Tangible impacts on the livelihood of the Syrian family
If we look at the budget of the average Syrian family, we find that the monthly need to cover basic expenses such as food, medical care, and education may range between 3 to 5 million Syrian pounds, while incomes remain much lower than that. The ultimate goal of any economic move, such as the formation of business councils, must be to reduce this gap. The citizen expects to see a decrease in the price of a kilogram of ghee or a liter of oil, and not just news about major agreements.
In conclusion, the formation of business councils remains a step in the right direction for stimulating the economy, but their results will not appear overnight. Success depends on how serious these councils are in transforming paper agreements into tangible commercial shipments and investment projects that create added value. The Syrian citizen, true to their usual pragmatism, will continue to monitor store shelves and exchange rates as the sole criterion for the success of these new economic policies.
