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Syrian Regime Increases Gasoline Prices, Rations Internet Usage

Syrians queue to buy bread from a bakery in Aleppo (File photo: AFP)
Syrians queue to buy bread from a bakery in Aleppo (File photo: AFP)
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Syrian Regime Increases Gasoline Prices, Rations Internet Usage

Syrians queue to buy bread from a bakery in Aleppo (File photo: AFP)
Syrians queue to buy bread from a bakery in Aleppo (File photo: AFP)

The Syrian Ministry of Communications and Technology began Sunday implementing a decision on Internet rationing, which would result in a rise in the costs of usage.

The government also, and without any prior notice, decided to increase the price of gasoline by SYP25/liter all over Syria, reaching SYP250/liter, as the exchange rate of the Syrian pound against the US dollar stands at SYP1030.

Inflation is already high, but observers expressed fears of soaring prices after the hike in the price of gasoline.

In an attempt to appease the country’s poorest and most vulnerable population, a decree was issued on a SYP20,000 increase in the salaries of the families of “martyrs,” the missing and soldiers and policemen suffering from huge disabilities.

Internet usage was rationed, which despite its bad shape,is the only means for Syrians to stay connected amid severe power cuts, a stifling domestic gas crisis, and the deterioration in the purchasing power of more than 85 percent of the Syrian people living below the poverty line.

The Ministry of Communications and Technology began applying the new mechanism for rationing Internet usage by setting a threshold for the use of ADSL. If the user exceeds usage limit, speed is reduced.

Immediately after the announcement of the new mechanism, a storm of criticism erupted.

MP Nabil Saleh warned against its consequences, saying that he, and 10 other parliamentarians, submitted a request to interrogate Minister of Communications Iyad al-Khatib.

Saleh wrote on his Facebook page that the Ministry is looking for profits without heeding the economic and psychological consequences that its decisions would have on the people, who have been suffering from a devastating war, soaring inflation, and the loss of basic necessities and living standards.

Former Minister of Communications Amr Salem responded angrily to Saleh, defending the new decision, saying the law targets users who “unfairly” use the Internet, and exchange hundreds of videos daily.

Saleh failed to collect 10 signatures to question the Minister of Oil for depriving a large segment of the Syrian people from cooking gas. He wasn’t either able to collect enough signatures to interrogate the Minister of Internal Trade for further worsening the people’s difficult living conditions.

But the lawmaker was successful in gathering 10 signatures to interrogate the Minister of Communications over the Internet usage limit.

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Cash Crunch Leaves Syrians Queueing for Hours to Collect Salaries

Syrian civil servants must queue at one of two state banks or affiliated ATMs, and withdrawals are capped. LOUAI BESHARA / AFP
Syrian civil servants must queue at one of two state banks or affiliated ATMs, and withdrawals are capped. LOUAI BESHARA / AFP
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Cash Crunch Leaves Syrians Queueing for Hours to Collect Salaries

Syrian civil servants must queue at one of two state banks or affiliated ATMs, and withdrawals are capped. LOUAI BESHARA / AFP
Syrian civil servants must queue at one of two state banks or affiliated ATMs, and withdrawals are capped. LOUAI BESHARA / AFP

Seated on the pavement outside a bank in central Damascus, Abu Fares's face is worn with exhaustion as he waits to collect a small portion of his pension.
"I've been here for four hours and I haven't so much as touched my pension," said the 77-year-old, who did not wish to give his full name.

"The cash dispensers are under-stocked and the queues are long," he continued.

Since the overthrow of president Bashar al-Assad last December, Syria has been struggling to emerge from the wake of nearly 14 years of civil war, and its banking sector is no exception.

Decades of punishing sanctions imposed on the Assad dynasty -- which the new authorities are seeking to have lifted -- have left about 90 percent of Syrians under the poverty line, according to the United Nations.

The liquidity crisis has forced authorities to drastically limit cash withdrawals, leaving much of the population struggling to make ends meet.

Prior to his ousting, Assad's key ally Russia held a monopoly on printing banknotes. The new authorities have only announced once that they have received a shipment of banknotes from Moscow since Assad's overthrow.
In a country with about 1.25 million public sector employees, civil servants must queue at one of two state banks or affiliated ATMs to make withdrawals, capped at about 200,000 Syrian pounds, the equivalent on the black market of $20 per day.

In some cases, they have to take a day off just to wait for the cash.

"There are sick people, elderly... we can't continue like this," said Abu Fares.

'Meagre sums'
"There is a clear lack of cash, and for that reason we deactivate the ATMs at the end of the workday," an employee at a private bank told AFP, preferring not to give her name.

A haphazard queue of about 300 people stretches outside the Commercial Bank of Syria. Some are sitting on the ground.

Afraa Jumaa, a civil servant, said she spends most of the money she withdraws on the travel fare to get to and from the bank.

"The conditions are difficult and we need to withdraw our salaries as quickly as possible," said the 43-year-old.
"It's not acceptable that we have to spend days to withdraw meagre sums."

The local currency has plunged in value since the civil war erupted in 2011, prior to which the dollar was valued at 50 pounds.

Economist Georges Khouzam explained that foreign exchange vendors -- whose work was outlawed under Assad -- "deliberately reduced cash flows in Syrian pounds to provoke rapid fluctuations in the market and turn a profit".

Muntaha Abbas, a 37-year-old civil servant, had to return three times to withdraw her entire salary of 500,000 pounds.

"There are a lot of ATMs in Damascus, but very few of them work," she said.

After a five-hour wait, she was finally able to withdraw 200,000 pounds.

"Queues and more queues... our lives have become a series of queues," she lamented.