Syrian Pound Falls to Near 10,000 Against Dollar On Black Market

Syrian pounds are pictured inside an exchange currency shop in Azaz, Syria February 3, 2020. REUTERS/Khalil Ashawi
Syrian pounds are pictured inside an exchange currency shop in Azaz, Syria February 3, 2020. REUTERS/Khalil Ashawi
TT
20

Syrian Pound Falls to Near 10,000 Against Dollar On Black Market

Syrian pounds are pictured inside an exchange currency shop in Azaz, Syria February 3, 2020. REUTERS/Khalil Ashawi
Syrian pounds are pictured inside an exchange currency shop in Azaz, Syria February 3, 2020. REUTERS/Khalil Ashawi

The value of the Syrian pound plunged Monday to nearly 10,000 against the dollar on the black market, websites monitoring the exchange rate said, following years of conflict and crippling sanctions.

The embattled currency stood at just 47 pounds to the dollar before Syria's civil war broke out in 2011. The conflict has since killed more than 500,000 people, displaced millions and battered the country's infrastructure and industry.

The pound hit a new record low of 9,750 to the dollar Monday, according to the unofficial exchange rate monitoring sites which traders use to determine the price of goods, AFP reported.

The official exchange rate approved by the central bank is 6,532 pounds to the dollar.

Damascus has blamed the country's economic woes on Western sanctions and the knock-on effects of an economic collapse in neighbouring Lebanon that has stemmed the flow of dollars into government-held areas.

The new plunge comes in the wake of Syria's recent return to the Arab fold after years of isolation.

"The war has not ended yet, and the reasons for the drop in the pound's value have not changed," said economist Ammar Yussef, pointing to "ongoing sanctions blocking exports".

"The Arab opening towards Damascus hasn't started to have an impact yet, particularly as it hasn't been accompanied by concrete economic steps," he added.

The pound's collapse -- from 5,000 to the dollar in October -- has driven up the price of basic goods and aggravated hardship in a war-ravaged country hit by crippling shortages of fuel and electricity.

An average monthly salary of 130,000 pounds, according to figures reported in Syrian media, is now worth little over $13.

The United Nations says some 90 percent of the population is poor, while the UN World Food Program estimates that more than 12 million people in the country are food insecure.



Syrian Letter Delivers Response to US Conditions for Sanctions Relief

 Syrian Foreign Minister Asaad al-Shaibani attends a UN Security Council meeting on the Middle East at the UN Headquarters in New York, April 25, 2025. (AFP)
Syrian Foreign Minister Asaad al-Shaibani attends a UN Security Council meeting on the Middle East at the UN Headquarters in New York, April 25, 2025. (AFP)
TT
20

Syrian Letter Delivers Response to US Conditions for Sanctions Relief

 Syrian Foreign Minister Asaad al-Shaibani attends a UN Security Council meeting on the Middle East at the UN Headquarters in New York, April 25, 2025. (AFP)
Syrian Foreign Minister Asaad al-Shaibani attends a UN Security Council meeting on the Middle East at the UN Headquarters in New York, April 25, 2025. (AFP)

Syria has responded in writing to a list of US conditions for possible partial sanctions relief, saying it had acted on most of them but others required "mutual understandings" with Washington, according to a copy of the letter seen by Reuters.

The United States last month handed Syria a list of eight conditions it wants Damascus to fulfill, including destroying any remaining chemical weapons stockpiles and ensuring foreigners are not given senior governing roles.

Syria is in desperate need of sanctions relief to kickstart an economy collapsed by 14 years of war, during which the United States, Britain and Europe imposed tough sanctions in a bid to put pressure on former president Bashar al-Assad.

In January, the US issued a six-month exemption for some sanctions to encourage aid, but this has had limited effect.

In exchange for fulfilling all the US demands, Washington would extend that suspension for two years and possibly issue another exemption, sources told Reuters in March.

Reuters was first to report that senior US official Natasha Franceschi handed the list of conditions to Syrian Foreign Minister Asaad al-Shaibani at an in-person meeting on the sidelines of a Syria donor conference in Brussels on March 18.

Shaibani, in his first address to the United Nations Security Council on Friday, sought to show that Syria was already addressing the demands, including on chemical weapons and the search for missing Americans in Syria.

His public comments were consistent with the contents of Syria's private letter to the US, an undated copy of which was seen by Reuters. Its contents have not been previously reported.

Two Western officials and a Syrian official briefed on the letter said it was consistent with the copy seen by Reuters.

In the four-page document, Syria pledges to set up a liaison office at the foreign ministry to find missing US journalist Austin Tice and details its work to tackle chemical weapons stockpiles, including closer ties with a global arms watchdog.

But it had less to say on other key demands, including removing foreign fighters and granting the US permission for counterterrorism strikes, according to the letter.

A State Department spokesperson confirmed Washington had received a response from Syrian authorities to a US request for them to take "specific, detailed confidence building measures”.

“We are now evaluating the response and do not have anything to share at this time,” the spokesperson said, adding that the US “does not recognize any entity as the government of Syria and that any future normalization of relations will be determined by the interim authorities' actions. "

Syria's foreign ministry did not immediately respond to a request for comment.

FOREIGN FIGHTERS

The letter said Syrian officials had discussed foreign fighters with former US envoy Daniel Rubinstein but that the issue "requires a broader consultative session."

"What can be confirmed for now is that the issuance of military ranks has been suspended following the earlier announcement regarding the promotion of six individuals," the letter says, an apparent reference to the appointment in December of foreign fighters including Uyghurs and a Turk to positions in the country's armed force.

It did not say whether those appointed ranks had been removed from the foreign fighters and did not list future steps to be taken.

A source briefed on the Syrian government's approach to the issue said Damascus would delay addressing it as much as possible given its view that non-Syrian fighters who helped oust Assad should be treated well.

On a US request for coordination on counterterrorism matters and the ability to carry out strikes on terror targets, the letter said the "matter requires mutual understandings."

It pledged that Syria's new government would not tolerate any threats to US or Western interests in Syria and vowed to put in place "appropriate legal measures," without elaborating.

Syria's interim President Ahmed al-Sharaa had said in an interview earlier this year that US troops deployed in Syria were there without government approval, adding any such presence should be agreed with the state.

A Syrian official briefed on the letter said Syrian officials were brainstorming other ways to weaken extremists without explicitly giving the US permission to carry out strikes, seeing that as a controversial move after years of foreign air forces bombing Syria during its war.

'GUARANTEES'

A senior diplomat and another person briefed on the letter told Reuters that they deemed it addressed five demands in full, but that the remaining were left "outstanding".

They said the letter was sent on April 14 - just 10 days before Shaibani arrived in New York to address the Security Council. It was unclear whether the United States had sent a reply to Syria's letter.

A Syrian official and a US source briefed on the letter both said Shibani was set to discuss its contents with US officials during his trip to New York.

Syria's letter said it hoped the actions taken, which it described as "guarantees," could lead to a meeting to discuss each point in detail, including reopening embassies and lifting sanctions.

On Palestinian militants in Syria, it said Sharaa had formed a committee "to monitor the activities of Palestinian factions," and that armed factions outside state control will not be permitted. It was sent just days before Syria detained two Palestinian officials from the Islamic Jihad militant group.

"While discussions on this matter can continue, the overarching position is that we will not allow Syria to become a source of threat to any party, including Israel," it said.

The letter also acknowledged "ongoing communication" between Syria's counterterrorism authorities and US representatives in Amman over combating ISIS, and said Syria was inclined to expand that collaboration. The direct talks between Syria and the US in Amman have not previously been reported.