Shafaq News- Damascus

Some Syrian traders set prices using dollar exchange rates above prevailing market levels, economic studies professor at Damascus University, Ziad Arabsh, told Shafaq News on Sunday, as consumers continue to face high prices despite the pound's recovery.

Arabsh illustrated the practice with a hypothetical example of traders pricing goods at 15,000 Syrian pounds (SYP) per dollar against a market rate of 14,000 to protect against future currency fluctuations. Rising import, energy, and transport costs also keep prices elevated, particularly as many goods are priced according to the parallel-market exchange rate.

He identified three major challenges: a balance-of-payments deficit driven by imports, insufficient government funding for essential services, and a widening gap between wages and living costs. Higher electricity and service charges have further increased pressure on households.

Despite the public-sector salary increase introduced in May 2026, the official monthly minimum wage of SYP 12,560 remains insufficient to meet a household’s basic needs. According to WFP, it covers only 48 percent of the national Minimum Expenditure Basket (MEB) for a family of five —estimated at SYP 26,069 in July 2026— and 76 percent of the basket’s food component, estimated at SYP 16,825. This means that a minimum-wage public-sector salary falls short of the full cost of essential food and non-food needs, leaving households with a substantial monthly gap.

Trade and Domestic Production

Speaking to Shafaq News, Mohammad Orfali, head of the Investment and Real Estate Development Committee at the Damascus Chamber of Commerce, attributed rising prices to inflation and import costs, and called for increased exports to narrow Syria's trade deficit.

Neighboring countries impose tariffs on Syrian products while supporting their own industries, placing local manufacturers at a competitive disadvantage, Orfali said, adding that foreign factories can export surplus goods at lower prices because domestic sales already cover much of their fixed operating costs.

Although greater trade with Jordan, Lebanon, Iraq, and Turkiye could provide cheaper goods, Orfali questioned whether Syrian households could afford them without improvements in purchasing power.

Arabsh also cited monopolistic practices and market concentration, warning that some supply networks control the distribution and pricing of essential goods. He called for stronger enforcement of competition rules and closer scrutiny of retail prices against actual costs.

Proposed Measures

To improve purchasing power, Arabsh proposed three measures: direct cash assistance for low-income households, wage adjustments linked to inflation, and immediate support for farmers and manufacturers through subsidized seeds, fertilizers, and electricity.

He also called for protecting domestic production, reducing transport costs, expanding export markets, and improving infrastructure and investment transparency to strengthen Syria's economy.

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