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Syria: Local Currency Devaluation Exacerbates Sufferings In Damascus

Souvenir mugs featuring Syria’s President Bashar al-Assad, Russia’s President Vladimir Putin and Lebanon's Hezbollah leader Sayyed Hassan Nasrallah are seen among other items for sale in old Damascus, Syria, February 8, 2016. REUTERS/Omar Sanadiki
Souvenir mugs featuring Syria’s President Bashar al-Assad, Russia’s President Vladimir Putin and Lebanon's Hezbollah leader Sayyed Hassan Nasrallah are seen among other items for sale in old Damascus, Syria, February 8, 2016. REUTERS/Omar Sanadiki
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Syria: Local Currency Devaluation Exacerbates Sufferings In Damascus

Souvenir mugs featuring Syria’s President Bashar al-Assad, Russia’s President Vladimir Putin and Lebanon's Hezbollah leader Sayyed Hassan Nasrallah are seen among other items for sale in old Damascus, Syria, February 8, 2016. REUTERS/Omar Sanadiki
Souvenir mugs featuring Syria’s President Bashar al-Assad, Russia’s President Vladimir Putin and Lebanon's Hezbollah leader Sayyed Hassan Nasrallah are seen among other items for sale in old Damascus, Syria, February 8, 2016. REUTERS/Omar Sanadiki

The rise in the exchange rate of the US dollar against the Syrian pound has exacerbated the suffering of the people of Damascus. Recent tension erupted between Rami Makhlouf, who for decades had the country’s most prominent economic pillars, and the government who asked the businessman to pay about $180 million. As a result, the lira lost about 35 percent of its value, as the exchange rate fell against the dollar from 1200 to 1600 after it was 46 liras back in 2011.

The Syrian regime has ordered a series of measures against Makhlouf’s companies, including the Association, and his shares in the state-owned Syrian Telecom Company (Syriatel), the country’s biggest mobile phone company.

The government’s Telecommunications and Postal Regulatory Authority informed two of Makhlouf’s companies, “Syriatel” and “MTN” mobile phone to pay about 234 billion Syrian pounds to the state treasury as a penalty.

Official media quoted a Syrian economic researcher as saying that the amendment of the contracts with the two mobile companies has caused the loss of more than 338 billion pounds (482 million dollars) to the treasury.

Economists told Asharq Al-Awsat that the crisis between the government and Makhlouf had been silent for a year, but that the new conflict emerged in light of “the government’s urgent need for the dollar,” which was reflected in a terrible rise in food prices in the capital.

The World Food Program estimated that food prices rose by 107% in one year.

In parallel, the Ministry of Oil stopped, on Sunday, supplying vehicles with subsidized gasoline, in a new austerity measure that reflects the exacerbation of the economic and financial crisis.

The decision sparked criticism on social media and on the street, while government officials blamed the fuel crisis on economic sanctions imposed by several Arab and Western countries, which prevented the arrival of oil tankers.

The US sanctions against Tehran have aggravated the fuel crisis in Syria, which depends on a credit line that links it to Iran to secure its fuel.

Meanwhile, the government and the central bank have demonstrated a great inability to find solutions to the economic crisis and to control the exchange rate. Instead, they stood idle at the fastest deterioration of the value of the lira without taking any proper action.

“Our government does not have the needed dollars and is barely managing to bring in wheat, sugar and rice,” An economic expert told Asharq Al-Awsat.

“Unless the government demonstrates great flexibility in the international conflict taking place over the Syrian file, the economic situation in the country is heading towards a further deterioration,” he added.

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In Assad's Hometown, Few Shared in His Family's Fortune. They Hope they Won't Share in His Downfall

A defaced portrait of ousted president Bashar al-Assad hangs on the wall of a building in the capital Damascus on December 17, 2024. (Photo by Sameer Al-DOUMY / AFP)
A defaced portrait of ousted president Bashar al-Assad hangs on the wall of a building in the capital Damascus on December 17, 2024. (Photo by Sameer Al-DOUMY / AFP)
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In Assad's Hometown, Few Shared in His Family's Fortune. They Hope they Won't Share in His Downfall

A defaced portrait of ousted president Bashar al-Assad hangs on the wall of a building in the capital Damascus on December 17, 2024. (Photo by Sameer Al-DOUMY / AFP)
A defaced portrait of ousted president Bashar al-Assad hangs on the wall of a building in the capital Damascus on December 17, 2024. (Photo by Sameer Al-DOUMY / AFP)

On the walls of the palatial mausoleum built to house the remains of former Syrian President Hafez Assad, vandals have sprayed variations of the phrase, “Damn your soul, Hafez.”
Nearly two weeks after the ouster of his son, Bashar Assad, people streamed in to take photos next to the burned-out hollow where the elder Assad’s grave used to be. It was torched by opposition fighters after a lightning offensive overthrew Assad's government, bringing more than a half-century rule by the Assad dynasty to an end, The Associated Press said.
The mausoleum's sprawling grounds — and the surrounding area, where the ousted president and other relatives had villas — were until recently off limits to residents of Qardaha, the former presidential dynasty's hometown in the mountains overlooking the coastal city of Latakia.
Nearby, Bashar Assad’s house was emptied by looters, who left the water taps running to flood it. At a villa belonging to three of his cousins, a father and his two young sons were removing pipes to sell the scrap metal. A gutted piano was tipped over on the floor.
While the Assads lived in luxury, most Qardaha residents — many, like Assad, members of the Alawite minority sect — survived on manual labor, low-level civil service jobs and farming to eke out a living. Many sent their sons to serve in the army, not out of loyalty to the government but because they had no other option.
“The situation was not what the rest of the Syrian society thought,” said Deeb Dayoub, an Alawite sheikh. “Everyone thought Qardaha was a city built on a marble rock and a square of aquamarine in every house," he said, referring to the trappings of wealth enjoyed by Assad's family.
In the city’s main street, a modest strip of small grocery stores and clothing shops, Ali Youssef, stood next to a coffee cart, gesturing with disdain. “This street is the best market and the best street in Qardaha and it’s full of potholes.”
Families resorted to eating bread dipped in oil and salt because they could not afford meat or vegetables, he said. Youssef said he dodged mandatory military service for two years, but eventually was forced to go.
“Our salary was 300,000 Syrian pounds,” a month, he said — just over $20. “We used to send it to our families to pay the rent or live and eat with it" while working jobs on the side to cover their own expenses.
"Very few people benefited from the former deposed regime,” Youssef said.
So far, residents said, the security forces made up of fighters from Hayat Tahrir al-Sham — the main group in the coalition that unseated Assad, and which is now ruling the country — have been respectful toward them.
“The security situation is fine so far, it’s acceptable, no major issues,” said Mariam al-Ali, who was in the market with her daughter. “There were a few abuses ... but it was fixed.” She did not elaborate, but others said there had been scattered incidents of robberies and looting or threats and insults.
Al-Ali called Assad a “traitor,” but she remained circumspect about her Alawite community's position in the new Syria.
“The most important thing is that there should be no sectarianism, so there will be no more blood spilled,” she said.
Dayoub, the Alawite sheikh, described “a state of anticipation and caution among all citizens in this area, and in general among Alawites,” although he said fears have started to ease.
At the town’s municipal building, dozens of notables sat on bleachers discussing the country' s new reality and what they hoped to convey to the new leadership.
Much was centered around economic woes — retired public servants' salaries had not been paid, the price of fuel had risen, there was no public transportation in the area.
But others had larger concerns.
“We hope that in the next government or the new Syria, we will have rights and duties like any Syrian citizen — we are not asking for any more or less,” said Jaafar Ahmed, a doctoral student and community activist. “We don’t accept the curtailment of our rights because the regime was part of this component.”
Questions also loomed about the fate of the area's sons who had served in Assad's army.
Since the army's collapse in the face of the opposition advance, residents said several thousand young army recruits from Qardaha have gone missing. Some later turned up on lists of former soldiers being held at a detention center in Hama.
“These are young guys who are 22 or 23 and they never took part" in active combat, said Qais Ibrahim, whose nephews were among the missing. Over the past few years, active combat was largely frozen in the country's civil war. “We send our children to the army because we don’t have any other source of income.”
Um Jaafar, who gave only her nickname out of fear of reprisals, said the family had no information about the fate of her two sons, stationed with the army in Raqqa and Deir Ezzour, though one son's name later turned up on the list of those imprisoned in Hama.
“My children got the best grades in school, but I didn’t have the ability to send them to the university,” she said. “They went to the army just for a salary that was barely enough to cover their transportation costs.”
Syria's new authorities have set up “reconciliation centers” around the country where former soldiers can register, hand over their weapons and receive a “reconciliation ID” allowing them to move freely and safely in Syria for three months.
But Ahmed, the doctoral student, said he wants more. As the country attempts to unify and move on after nearly 14 years of civil war, he said, “We want either forgiveness for all or accountability for all.”
Ahmed acknowledged that during the war, “rural Latakia was responsible for some radical groups,” referring to pro-Assad militias accused of widespread abuses against civilians. But, he said, opposition groups also committed abuses.
“We hope that there will be either an open process of reconciliation ... or transitional justice in which all will be held accountable for their mistakes, from all parties," he said.
"We can’t talk about holding accountable one ... group but not another.”