Collapse of the Syrian currency: Syria descends into chaos

The Syrian lira, Syria’s official currency, is in free fall. In some parts of the country, the exchange rate for one US dollar was over 13,000 Syrian liras. In mid-July, the rate was around 10,500 Syrian lira. The currency has lost almost 80% of its value since the beginning of 2022. For comparison: Before the civil war in 2011, the exchange rate was 46 Syrian lira.
At the same time, inflation is rising at a record pace. According to US economist Steve Hanke, current inflation is 211% after hitting 188% just three days earlier.
Syria is sinking more and more into chaos. A slight recovery was expected following the policy of reconciliation with the Arab world and the easing of some sanctions following the devastating earthquake on February 6 in the north of the country. Quite a few are therefore accusing the Syrian government of miserable economic and financial policies. In some cities controlled by the Assad regime, people took to the streets to demonstrate against the country’s rapidly deteriorating economic situation. An extraordinary session was convened in the Syrian parliament in Damascus to discuss the escalating situation.
Meanwhile, impoverishment in Syria is progressing rapidly. According to the UN World Food Program (WFP), at least 12.4 million people in Syria are currently suffering from hunger, affecting over 60% of the Syrian population. In just one year, the number has increased by 4.5 million. Over 90% of the Syrian population lives below the poverty line. With each fall of the currency and rise in inflation, the situation worsens. In addition, the WFP has reduced its aid to Syria by 40% due to an “unprecedented funding crisis”. Instead of 5.6 million people who depend on the aid, only 3 million people are being supplied. The rations have already been reduced.
The hunger crisis in Syria is reaching unprecedented proportions. The famine could turn into a humanitarian catastrophe in a short time. Meanwhile, in the midst of this crisis, neighboring countries are deporting Syrian refugees to Syria. Turkey launched a nationwide campaign against “illegal migration” a few weeks ago. However, Syrian refugees who enjoy temporary protection are also deported. Lebanon is another country that deports Syrian refugees into Syria by busses. Many of these refugees are left with nothing in Syria.
The next conflicts, crises and disasters are inevitable to further hit Syria. As an unprecedented catastrophe looms in Syria, the Syrian government and ally Russia are keeping many border crossings closed, which could at least provide some relief for many people in the country.