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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
    Ankara, Damascus, Idlib- Saeed Abdulrazek, Firas Karam, and Asharq Al-Awsat
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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.

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Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.