As the Turkish lira deteriorates, Syrians across the northwest face rising prices, wage stagnation, and renewed pressure on daily life in the wake of the regime’s fall.
Nearly four months after the collapse of the ousted Syrian regime, the Turkish lira remains the dominant currency in daily transactions across northwestern Syria. Amid a deepening scarcity of the Syrian banknotes, despite the local currency’s partial recovery to 10,000 lira per U.S dollar, the Turkish lira continues to serve as the most viable option for residential and traders.
With the ousted regime losing control over large areas of the northwest and Turkish forces establishing a presence, the Turkish lira quickly emerged as a strong alternative to the Syrian lira, which had seen a historic and unprecedented collapse. Regions under the control of opposition factions, including Idlib province and parts of rural Aleppo, Hama and Latakia, have since adopted the Turkish lira as the de facto currency for salaries and commercial activity.
Mohammed al-Samah, a 38 years-old merchant, living in Sarmada, north of Idlib, told the fifth issue of the printed edition of +963 “People turned to the Turkish lira because it was more stable than the Syrian lira, which loses value every day. “Even salaries in government associations and service institutions are being paid in Turkish lira,” he added.
However, al-Samah expressed concerns over the recent sharp decline in the Turkish lira’s value and the volatility of its exchange rate, raising doubts about its future as a reliable currency. “It’s starting to resemble the Syrian pound in its instability,” he said.
He added that the prices of food and essential goods have been rising daily, fueled by the erratic exchange market. This has resulted in sharp fluctuations in pricing, as well as increased hoarding and price manipulation by traders seeking to maximize profit.
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The Turkish lira’s value has plunged to an unprecedented low of 39 lira per U.S. dollar, following months of steady decline. The currency has depreciated more than 11% against the dollar in the past year, and over 40% since the beginning of 2023, fueling concerns across northern Syria where it is widely used.
Yassin al-Tayyar a 42-year-old, daily labourer displaced from his hometown and currently living in a camp near Idlib, expressed deep frustration with the worsening economic situation since the adoption of the Turkish lira. “Since the collapse of the Turkish lira and the fluctuation in its exchange rate, I can no longer afford even the most basic living expenses for my family of five,” he told +963.
Al-Tayyar highlighted the growing gap between wages and rising prices, saying “I
that stagnant incomes have compounded the suffering of workers and public employees. “I earn just 200 Turkish lira a day—about five U.S. dollars at best, which isn’t enough to buy bread and a few vegetables for my family,” he said.
He urged authorities to intervene and consider reintroducing the Syrian lira, which he claims has seen notable recovery following the regime’s collapse.
Since late 2019, Turkey has been caught in a cycle of currency depreciation and double-digit inflation, making everyday living increasingly unaffordable. According to AFP, annual inflation in Turkey peaked at 75.45% in May, affecting not only Turks but also Syrians who rely on the Turkish lira for survival.
Meanwhile, areas that continue to use the Syrian lira are also grappling with extreme economic instability. Prior to the fall of the ousted regime, the U.S. dollar traded at over 15,000 Syrian lira on the black market, sending purchasing power to historic lows. Despite a marked rebound in the lira’s exchange rate, citizens say prices of food and basic goods remain unchanged, adding to their disillusionment and hardship.
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In Damascus, the Turkish lira has slowly started to circulate, but limited access to regulated exchange services leaves holders vulnerable to fraud from unlicensed vendors and street cashiers. The absence of a formal exchange infrastructure has discouraged many residents from using Turkish currency in daily transactions.
Economic analyst Younis al-Karim told +963 that reactivating the Syrian lira across the country could take between two to five years. He cited persistent challenges, including a shortage of cash, the absence of functioning central bank branches in areas controlled by the Autonomous Administration, and the continued use of Turkish lira to pay salaries by Turkey to various military factions.
Al-Karim warned that the ongoing collapse of the Turkish lira would further burden citizens. “The reliance of traders on the U.S. dollar as the main currency for purchasing and business activities will inevitably raise the cost of imports and shipping, driving up the prices of goods and consumer materials,” he explained.
He also noted that the Syrian Interim Government lacks the authority to determine currency policy under current political conditions. “The complexities of the regional landscape, and the fact that Turkey remains a key ally of Damascus, make it unlikely that Ankara would welcome the return of large amounts of Turkish lira. Such a move could place additional strain on the Central Bank of Turkey,” al-Karim added.
