The Economic Situation in the Syrian North and how it’s Affected by the Volatility of the Turkish Lira
Report produced by the societal unit
The liberated areas in the Syrian North have witnessed an aggressive economic shock for the second time over 2 years. Indeed, after the quick collapse of the Syrian Lira in mid-2020 and the adoption of the Turkish Lira, the area went through another economic shock due to the instability of the value of the Turkish Lira. This was exemplified especially in the month of December 2021, with the Turkish Lira reaching an exchange value of almost 18 TL for one USD on the 20th of the month. The repercussions of this were very clear in the Syrian North, as prices were inflated dramatically, and the purchasing power of salaries and wages further decreased. A humanitarian crisis started to emerge in the area, especially with the prices not recovering with the relative recovery of the Turkish Lira.
This event reveals the fragility of the economy in this region; thus it seems necessary to study and learn from what has happened in order to develop solutions that can mitigate the humanitarian suffering and the economic repercussions, in case the Turkish Lira goes back to a state of instability as the experts predict. Not to mention reassessing the economic situation of these areas and develop it further, given that it is one of the methods of bringing about stability and early recovery.
To that aim, the report attempts to raise awareness about life in the Syrian North with regards to its humanitarian, economic, and services aspects. As well as touching upon what problems and repercussions the volatility of the Turkish Lira has brought upon the society of those regions, and finally suggesting some practical solutions that can help mitigate some of the negative effects or prevent their reoccurrence.
This report has mainly relied on the outcomes of a workshop conducted by the Syrian Dialogue Center on the expert level, where a group of academics specialising in economics as well as some local civil society leaders and researchers were participating. It also relied on a bundle of article and studies that help understand the current economic situation of the area.
In the first section, the report briefly discusses the reality of life in the Syrian North, and that is by going over the humanitarian, economic, services, and investment aspects. It then in the second section attempts to shed a light on the effect of the Turkish Lira’s volatility and its economic repercussions on the area. The third section then reveals the main factors behind the economic difficulties the area goes through, and finally in the final section the report gives a bundle of solutions and visions that may help deal with current and strategic issues.
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مؤسسة بحثية سورية تسعى إلى الإسهام في بناء الرؤى والمعارف بما يساعد السوريين على إنضاج حلول عملية لمواجهة التحديات الوطنية المشتركة وتحقيق التنمية المستدامة
