Lebanon’s Bank Freeze Is A Syrian Loss

With the Lebanese banks running out of currency, Syria is also on the receiving end

With cash crunch in Lebanese Banks, Syrian economy is under added pressure

Syria cannot avoid facing a ripple effect to a situation starting in the face of Lebanon. Both economies are interconnected and this has never been as obvious as it has become now.  Strangely so, while the civil war broke in Syria in 2011, businessmen back home continue to use their transferred funds to do business through Lebanese banks.

The Lebanese pound is escalating and has come to 1500 to a US dollar. Traders are giving it away for 2000 to a US dollar. So liquid cash has gone dry and so is the Syrian population feeling the suffocation. They could avoid sanctions and do trade. The link became more prominent and redefined the previous link where Syrian labor is known to have rebuild Lebanon till 1990.

Syrians source their fuel through Lebanese ports, another reason of worry, as the latter is in a tussle for good governance and ports are literally under the watch of the civilian population which has set control over profits being pocketed by the elite over illicit trade.  It was reported widely in the media that Syrian population suffered immensely at the hands of government tussle with militia.  Cooking gas was scarce leading to severe shortage in 2018. The population is still recovering from the aftermaths of a civil war that is receding.

According to the Economist report, Lebanon is Syria’s biggest foreign market. Undeniably, a drop in purchasing power may hurt trade.  But Assad has a different take on Syrians and feels they have a lot of money. The ones really suffering are the common man, who can’t make ends meet. To top it all, with Lebanon going through a power tussle, people are not interested in having Hariri’s back into power. Under his leadership, Lebanon saw money underutilized and elite self serving using resources meant to better the civic services.

That never happened and Lebanese population isn’t backing down this time.

On its part, the Syrian government is trying to come back on its feet. It is trying to reduce dependency on imports- that is a tough battle as long drawn civil war in the country has devoured the economy. There is no manufacturing and existing factories cannot provide basic goods. Many firms are forced to rely on raw materials from abroad, bought with dollars. This forces them to then sell their finished goods on an impoverished domestic market.  

So, unless a Lebanese government does not come into force, the Syrian population will be put to discomfort of a different kind. Winter makes it harsh, like it does for the rest of the world. Currently, more than 50 percent of the Syrian population is without employment, basic amenities, shelter or medical facilities. UN has burnt its hands too many times and now is short of funds to save a dilapidated nation.

More than a million are refugees in Turkey and live under fear of being displaced. The only hope is for a stable ecosystem and government to come in place quickly- both for Syria and Lebanon for their own good.