- Title: RELIGION-EID/SYRIA PREPS Damascus shoppers undeterred by high prices ahead of Eid
- Date: 14th July 2015
- Summary: (SOUNDBITE) (Arabic) SHOP OWNER, FIRAS, SAYING: "Thank God, during these few days safe and security returned here unlike before that is why people came to the markets and thank God." CROWDED MARKETS DAMASCUS, SYRIA (JULY 5, 2015) (REUTERS) VARIOUS OF GOVERNOR OF SYRIA'S CENTRAL BANK, ADIB MAYALEH, WITH REPORTERS MAYALEH'S EYES (SOUNDBITE) (Arabic) GOVERNOR OF SYRIA'S CENTR
- Embargoed: 29th July 2015 13:00
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- Topics: General
- Reuters ID: LVAUN70I88VH9FLPKWVSIOTGNGF
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- Story Text: The streets of downtown Damascus are teeming with shoppers, with many out buying gifts ahead of the Eid al-Fitr holiday.
The holiday marks the end of the month of Ramadan when observant Muslims fast from dawn to sunset.
But despite the ongoing war tearing the country apart and high inflation pushing up prices, many people here feel safe to be out stocking up on Eid supplies.
Many shop owners, like Firas, say that unlike previous years, this year's turnout is high.
"Thank god, during these few days safe and security returned here unlike before that is why people came to the markets and thank god," Firas said.
The governor of the Syrian Central Bank, Adib Mayaleh, said the Bank is working towards limiting the effects of the war on the people.
"Sure, there is a decrease, even if it is relative, in living standards of citizens. But this is because the effects of the war are still present. This is true. But the goal is to limit these negative effects on the citizen. That is what we can talk about, through stability. Syria's Central Bank is trying with all means to limit the effects of this war on the prices and on the increase in the devastation of the economy," Mayaleh said.
Even with the Bank's efforts, goods are still expensive.
"The prices are very high. For example, a blouse costs 4000 Syrian pounds (13 USD). Very expensive. But we are obliged to buy clothes for our children. You have to buy stuff for them," said Damascus resident Hadil Koutabi.
According to a recent report by British think-tank Chatham House, the country's economy has more than halved in the four years since the civil war broke out, with oil production dwindling, inflation surging and the currency near collapse.
The report said the Syrian pound has lost 78 percent of its value since the conflict began in 2011, while the year-on-year rate of inflation peaked at about 120 percent in July and August 2013.
The rise in prices averaged 51 percent between January 2012 and March 2015. But life goes on here, and as part of the holy month, the Ministry of Tourism organised a Ramadan Festival at a historic landmark, Tukiyeh Suleimaniyeh.
The festival includes a mix of cultural events but also a space for vendors to sell clothes at a cheaper price ahead of Eid.
"We are helping with the prices. The most important thing now is the price, because if someone has a limited income and more than one child, they find the prices here better than outside. If they have four children they save 10000 Syrian pound (33 USD)," said Tarek Hassoun, a vendor at the festival.
Last week Syrian President Bashar al-Assad signed a law ratifying a $1 billion credit line from top regional ally Iran, Syria's state news agency SANA said, funds which will help ease economic strains from the costly war.
The agreement was between two state-owned banks, the Syrian Commercial Bank and Export Development Bank of Iran, it said. Syria signed a previous $3.6 billion credit line with Iran in July 2013 which has been used up mostly for oil imports, bankers have said.
Syria's economy has also been hurt by a depletion of foreign reserves that were estimated at $16 billion-18 billion before the crisis. The country had been earning some $2.5 billion a year from oil exports before the war. - Copyright Holder: REUTERS
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