Turkish Lira Notes Circulate in Northern Syria

From Saturday to Monday alone, the black market value of the Syrian pound plummeted from 2,300 to more than 3,000 to the dollar, more than four times the official rate of around 700 Delil SOULEIMAN AFP/File
From Saturday to Monday alone, the black market value of the Syrian pound plummeted from 2,300 to more than 3,000 to the dollar, more than four times the official rate of around 700 Delil SOULEIMAN AFP/File
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Turkish Lira Notes Circulate in Northern Syria

From Saturday to Monday alone, the black market value of the Syrian pound plummeted from 2,300 to more than 3,000 to the dollar, more than four times the official rate of around 700 Delil SOULEIMAN AFP/File
From Saturday to Monday alone, the black market value of the Syrian pound plummeted from 2,300 to more than 3,000 to the dollar, more than four times the official rate of around 700 Delil SOULEIMAN AFP/File

The Turkish lira has started making its way to northern Syria following a decision by pro-Ankara military factions and local opposition councils to encourage its use instead of the Syrian pound, which has greatly decreased in value in the last days.

During three military operations backed by loyal factions, the Turkish Army had recently controlled large swathes of territory in northern Syria.

Ankara helped introduce Turkish services and government institutions and services to those areas, which host more than 3 million Syrians.

Therefore, in order to protect citizens' savings due to the rapid depreciation of the Syrian pound, local military and civil institutions hurried to adopt the Turkish lira in the area.

Mustafa Madi, the owner of an electrical tools shop in Saramand in the countryside of Idlib, told Asharq Al-Awsat, “Of course, it is safer to commercially deal with the Turkish lira instead of the Syrian lira, which is witnessing an unprecedented devaluation.”

He said the rapid depreciation of the Syrian pound inflicts immense financial losses because merchants are forced to change to prices of products all the time.

Human Rights activist Akram Junaid said: “the economic situation in northern Syria is now completely linked to the Turkish economy.”

This week, the Syrian pound’s exchange rate to the dollar crashed, hitting a record low against the US dollar (USD).

Economy and Finance in the Syrian Interim Government, Abdul Karim al-Masri said that all dealings at government institutions would be in the Turkish lira or the US dollar. “We will buy wheat and sell flour in the dollar and we will sell bread in the Turkish lira,” Masri said.

In Damascus, sources told Asharq Al-Awsat that the slight amelioration in the value of the Syrian lira exchange rate in the past few days came after Syrian businessmen injected US dollars in the market, in addition to a decision by the Syrian Central Bank to control money transfers from outside the country.

Such measures helped the Syrian pound to trade at 2,400 against the dollar after hitting a record low of 3,400 last Monday.

Syria's economy has been battered by nine years of war, compounded by a financial crisis in neighboring Lebanon, which had served as a conduit for dollars into government-held areas under international sanctions.

Big dealers told Asharq Al-Awsat that ATMs were currently not operating in Syria following an old dispute between the Central Bank of Syria and the Lebanese operating company, CSC Group, which is owned by Abdul-Qader Douweyk.

They uncovered that the CB is planning to transfer the contract to a relative of Asmaa Assad, the wife of President Bashar Assad.



IMF Eyes Revised Global Forecast, but Warns Trade Tensions Still Cloud Outlook

A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.
A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.
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IMF Eyes Revised Global Forecast, but Warns Trade Tensions Still Cloud Outlook

A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.
A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.

The International Monetary Fund warned on Friday that risks related to trade tensions continue to cloud the global economic outlook and uncertainty remains high despite some increased trade and improved financial conditions.

IMF First Deputy Managing Director Gita Gopinath said the fund would update its global forecast later in July given "front-loading ahead of tariff increases and some trade diversion," along with improved financial conditions and signs of continued declines in inflation.

In April the IMF slashed its growth forecasts for the United States, China and most countries, citing the impact of US tariffs on imports now at 100-year highs and warning that rising trade tensions would further slow growth.

At the time, it cut its forecast for global growth by 0.5 percentage points to 2.8% for 2025, and by 0.3 percentage points to 3%. Economists expect a slight upward revision when the IMF releases an updated forecast in late July.

According to Reuters, Gopinath told finance officials from the Group of 20 major economies who met this week in South Africa that trade tensions continued to complicate the economic outlook.

"While we will update our global forecast at the end of July, downside risks continue to dominate the outlook and uncertainty remains high," she said, in a text of her remarks.

She urged countries to resolve trade tensions and implement policy changes to address underlying domestic imbalances, including scaling back fiscal outlays and putting debt on a sustainable path.

Gopinath also underscored the need for monetary policy officials to carefully calibrate their decisions to specific circumstances in their countries, and stressed the need to protect central bank independence. This was a key theme in the G20 communique released by finance officials.

Gopinath said capital flows to emerging markets and developing economies remained sluggish, but resilient, in the face of increased policy uncertainty and market volatility. For many borrowers, financing conditions remained tight.

For countries with unsustainable debt, proactive moves were essential, Gopinath said, repeating the IMF's call for timely and efficient debt restructuring mechanisms.

More work was needed on that issue, including allowing middle-income countries to access the G20's Common Framework for Debt Restructuring, she said.