Syrian economy hits serious problems

Published on September 29, 2011 by John Roe · No Comments

A weakening currency combined with an ever deepening recession has put the Syrian economy in real trouble.

The Syrian economy is facing a troubling period

The national government is now so low on funds that they have been left with no choice but to levy a special tax on state workers, a move which has not been well received.

The government have been forced to suspend the import of cars and the tourism industry, upon which the country is so reliant, has been on a rapid downward curve for some time.

“The economic situation in Syria is very serious indeed,” said Steven Heydemann, a Middle East analyst at the U.S institute of peace.

“The impact of sanctions will gradually strangle activity. The Syrian government likes to give the impression its business as usual, but the reality is very different.”

A planned EU ban on oil imports is also set to have a worsening affect on the economy, with Turkey also preparing sanctions of their own which could affect trade between the two nations significantly.

A potential lifeline from Iran has been suggested, but has not yet been forthcoming.

Heydemann said that there were “reports the Iranians have offered to provide (President Bashar al-Assad) with $6bn to tide him over, but no evidence they have delivered on their promise, at least not so far.”

Transferring money to Syria

If you are looking to invest in Syria, think carefully about how you will be transferring money to Syria. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are sending money to Syria – which you will inevitably have to do if you are looking to make a property investment – be sure to compare the market before you buy your overseas currency.