The economic scene in Syria witnessed over the past year a series of fundamental transformations that reshaped the local market's landscape. This year, which we refer to as "the Year of Transformation," was not merely a transient period, but a pivotal juncture between a phase of severe volatility and a new phase characterized by an attempt to build a solid foundation for economic stability. The Syrian citizen, who monitors price movements daily in shops, has begun to observe signs of this transformation through the relative calm that has affected some sectors, despite the continued existence of significant challenges that require innovative and sustainable solutions.
Talking about the Syrian economy today goes beyond the dry language of numbers; it touches the core of daily life for every family. From the price of a bundle of bread and the cost of a liter of frying oil, up to the prices of real estate and cars, we find that the changes that have occurred in financial policies have left a clear impact. The primary goal of these transformations has always been an attempt to create a balance between available resources and the increasing needs of the market, with a focus on supporting local production to reduce reliance on foreign goods.
Exchange rate stability and its impact on buying and selling activity
The exchange rate is the primary driver of the economic cycle in Syria, and it is the compass that determines the direction of prices in the local market. During the past year, financial authorities exerted diligent efforts to narrow the gap between the different exchange rates, which led to a state of relative stability. This stability reflected positively on the ability of traders and industrialists to price their goods more accurately, away from the large risk margins that were causing prices to skyrocket.
For the average citizen, the stability of the exchange rate at certain levels, let's say around 14,000 to 15,000 Syrian pounds per US dollar as an approximate example during periods of stability, means that the price of sugar or rice will not change overnight. This psychological stability allows Syrian families to better organize their monthly budgets and reduces the phenomenon of monopolization that thrived during periods of price volatility. However, the biggest challenge remains in raising the purchasing power of the pound to match the high cost of living.
Gold in Syria: The Safe Haven and Economic Compass for the Citizen
Gold in Syria has always been considered more than just a means of adornment; it is the true store of value and savings for Syrians. During the year of transformation, local gold prices witnessed jumps that coincided with global increases for the yellow metal. The price of one gram of 21-karat gold reached levels approaching one million Syrian pounds, a figure that reflects the value of national savings in the face of inflation.
The impact of gold prices on daily life is clearly evident in social occasions and buying and selling movements in the markets. Many people resort to selling part of their gold savings to cover essential expenses such as education, home maintenance, or starting small projects. Gold also acts as a confidence indicator; the more stable the price of gold, the greater the demand for investment in other areas. Local markets in Damascus, Aleppo, and Homs still witness active movement in goldsmiths' shops, indicating that the culture of "gold is adornment and a treasure" remains deeply rooted in the Syrian economic mindset.
Domestic Production: The Cornerstone in Facing Import Challenges
Among the most important achievements realized in the year of transformation is the focus on the "Made in Syria" slogan. The trend towards supporting small workshops and medium-sized factories had a significant impact in providing local alternatives for many goods that were draining foreign currency. Local markets today are bustling with Syrian-made products, from clothing and footwear to foodstuffs and canned goods, and at competitive prices compared to imported goods.
This shift towards production not only provided goods but also contributed to creating job opportunities for thousands of young people. When you find a locally produced bottle of vegetable oil at an approximate price of 25,000 Syrian Pounds, while the imported one far exceeds that, this constitutes direct support for the citizen's pocket. The challenge awaiting this sector is securing production inputs at stable prices and ensuring the quality of the Syrian product to compete in foreign markets, which will restore the Syrian brand to its accustomed luster.
Digital Transformation and Electronic Payment: A New Financial Culture
It's impossible to discuss last year's achievements without addressing the qualitative leap in electronic payments. Syria has begun taking serious steps towards financial digitization, as citizens can now pay electricity, water, and phone bills, and even university fees, through mobile applications. This transformation has significantly eased many burdens and congestion at government offices, saving time and effort.
In addition, the activation of electronic payment systems in major commercial stores and restaurants has begun to change consumer behavior. Although this culture is still in its early stages and requires stronger infrastructure and wider awareness, it is a necessary step to control cash liquidity and reduce reliance on the circulation of worn-out paper currency. Linking bank accounts to daily transactions enhances economic transparency and provides citizens with a modern and secure way to manage their money, away from the risks of carrying large amounts of banknotes.
Challenges of Purchasing Power and Household Budget Management
Despite all the achievements made in regulating the financial sector and supporting production, the biggest and most urgent challenge remains the gap between income and prices. The Syrian citizen today faces a difficult equation in managing their budget. For example, a family of five needs approximate amounts exceeding two million Syrian pounds monthly to secure the minimum food and service needs, while salaries and wages still struggle to keep pace with these figures.
This reality has forced many families to adopt harsh austerity strategies, or to search for additional income sources through freelance work or by relying on external financial remittances, which play a vital role in boosting liquidity and stimulating local consumption. Market stability is the first step, but the next and most important step in our current year is how to transform this stability into growth that the citizen feels in their pocket and in their ability to secure a decent life without the burden of constantly thinking about high prices.
Future Outlook: What Awaits the Syrian Economy?
The Syrian economy today stands on the threshold of a stage that requires the concerted effort of all, from the public sector to the private sector. The achievements made in the year of transformation laid the foundational building blocks, but construction is still ongoing. Expectations indicate that the upcoming focus will be on attracting investments in the renewable energy sector as a solution to production problems, and expanding the export base for Syrian agricultural and industrial products.
Local markets are yearning for more stability, and the citizen awaits the fruits of these economic transformations to reflect a tangible decrease in living costs. Syria possesses the minds and commercial expertise that qualify it to overcome difficulties, as history testifies that the Syrian merchant and industrialist is capable of innovation in the most challenging circumstances. The future depends on the ability to transform current challenges into real opportunities for development, while preserving the identity of the national economy and protecting the most vulnerable groups in society.
