Turkish lira slump hits displaced families in Syria's northwest

Record ID: 1650466

  • Title: Turkish lira slump hits displaced families in Syria's northwest
  • Date: 9th December 2021
  • Summary: IDLIB, SYRIA (DECEMBER 4, 2021) (Reuters) VARIOUS SREET SCENES IN IDLIB, NORTHERN SYRIA / TRAFFIC / PEDESTRAINS IDLIB, SYRIA (DECEMBER 5, 2021) (Reuters) EXTERIOR OF HASSAN AL-KHALAF'S EXCHANGE SHOP / PEOPLE WALKING IN VARIOUS OF PEOPLE IN SHOP EXCHANGING MONEY SCREEN ON WALL SHOWING CURRENCY PRICES (SOUNDBITE) (Arabic) OWNER OF A CURRENCY EXCHANGE SHOP, HASSAN AL-KHALAF, SAYING: "During the past month or two, we took several blows because of the economic stagnation and inflation in the liberated areas (opposition-held northwest of Syria). The Turkish lira affected currency shop owners, wholesale stores, and the citizen. In just one day we experience huge losses because we complete transactions with the Turkish lira, and by the time we come to sell the lira we bought, we'd find it lost its value. So at the end of the day we lose." PEOPLE AT CURRENCY EXCHANGE SHOP TURKISH LIRA ON TABLE KHALAF COUNTING MONEY TURKISH LIRA AND DOLLARS IN DRAWER (SOUNDBITE) (Arabic) OWNER OF A CURRENCY EXCHANGE SHOP, HASSAN AL-KHALAF, SAYING: "Instead of exchanging 50 dollars, people exchange just five, ten or 20 dollars because of the lack of trust in the Turkish currency." IDLIB, SYRIA (DECEMBER 4, 2021) (Reuters) VARIOUS OF VEGETABLE MARKET IN IDLIB (SOUNDBITE) (Arabic) OWNER OF A GROCERY SHOP, AMER IZZEDIN, SAYING: "The Turkish lira has had a negative impact on us here. Why should it be our fault if sanctions were imposed on Turkey. It's affected us." PEOPLE AT MARKET (SOUNDBITE) (Arabic) OWNER OF A GROCERY STORE, AMER IZZEDIN, SAYING: "We wish for war now, because death is easier for us. I am sad for my children. They wish to eat bananas and I do not have money for that. I say bread is more important." VARIOUS STREET SCENES (SOUNDBITE) (Arabic) CART VENDOR, ABU AKRAM, SAYING: "There is no movement (selling) at all. The whole city is frozen." VARIOUS STREET SCENES
  • Embargoed: 23rd December 2021 13:12
  • Keywords: Crisis Currency Devaluation Money Syria Turkey
  • Location: IDLIB, SYRIA
  • City: IDLIB, SYRIA
  • Country: Syria
  • Topics: Currencies/Foreign Exchange Markets,Economic Events,Middle East
  • Reuters ID: LVA001F7BGVUV
  • Aspect Ratio: 16:9
  • Story Text: Amer Ezzeldin was already struggling to make ends meet in the northwestern province he fled to during Syria's civil war. Then the value of his meagre earnings started shrinking as an economic crisis spread over the border from neighbouring Turkey.
    The 30-year-old, like many Syrians displaced in Idlib close to the frontier with Turkey, gets paid in Turkish lira - a currency that has slumped against the U.S. dollar.
    The 20 lira he earns every day working on one of the city's fruit and vegetable markets has been steadily falling in value over the past few months.
    More than four million people live in the densely populated opposition-held northwest, including half a million in tents along the Turkish frontier.
    The move to use Turkish money instead of Syrian pounds started gaining momentum last year, a sign of Ankara's growing influence in a region seized by Turkish troops and their Syrian rebel allies more than four years ago from Islamic State fighters.
    Most Syrians were happy to escape the fluctuations of their local currency at the time, taking comfort in the relative stability of the lira.
    But the strategy has now backfired with most in the area earning their wages in a currency that has lost 46% of its value against the dollar since the beginning of the year. The slump accelerated into a full-blown crisis last month, when the currency crashed 30%.
    In Idlib, prices of basic goods such as food and fuel have been on the rise in the past month with staples like rice and tea almost doubling in a region mostly housing displaced people and where living conditions are already dire.
    In only one morning he incurred major losses, said Hassan al-Khalaf, who owns al-Manar currency exchange bureau in Idlib, Syria's last rebel stronghold, said.
    Khalaf said most exchange offices were now having to factor in future slides and charge a bit more than the official rate, transferring the burden to the end consumer.
    Abu Akram, who makes a living selling toys on a cart, says no one can afford to buy much these days.
    There is no movement, no sales, he said.
    Ezzedlin, who fled to Idlib to escape fighting around his home in the western city of Homs seven years ago, said his daily wages were now worth around $1.50 - barely enough to buy basics.
    "We wish for war now, because death is easier for us."
    (Mahmoud Hassano, Firas Makdesi, Kinda Makieh)
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