In the run-up to the tightening of sanctions against Syria through the so-called Caesar Act issued in the US, inflation explodes in Syria.

The Caesar Act means a massive tightening of sanctions against the Syrian regime and makes the reconstruction of the country impossible. The sanctions are aimed not only against those responsible for torture and regime officials, but against everyone who "supports" the government in Damascus in any way. This means that not only Iran and Russia are the focus of the sanctions, but also every company that accepts orders for some work of reconstruction.

200 percent inflation

The Syrian lira has lost 200 percent of its value against the dollar since the beginning of the year. With the entry into force of the new sanction package on June 17, inflation is expected to escalate further and prices to rise significantly.

Turkey uses Caesar Act for its interests

The Turkish state had introduced the Turkish lira in the territories it occupied. The Azaz region was the first area last year to experiment the introduction of the Turkish Lira. Jerablus, Bab and Afrin followed. Under the pretext of the Syrian sanctions, the use of the Turkish Lira has now become mandatory there. The introduction of Turkish currency has also been announced for the areas around Serêkaniyê (Ras al-Ain) and Girê Spî (Tall Abyad).

Inflation also affects Autonomous Administration regions

The depreciation of the Syrian lira has also adversely affected the economy of the Autonomous Administration areas in northern Syria which try to counteract this by freezing prices for basic products. Co-Executive Council member of the Democratic Union Party (PYD), Aldar Xelîl spoke to Ronahî TV about this issue. He said: "They claim that the law only affects the areas that Iran, the Syrian regime and Russia control. But in fact this is not the case. All of these areas continue to be interdependent. After the Act came out, the Turkish state imposed its currency in the territories it occupied. They say that the Syrian lira is losing value and are using it as an excuse to force the introduction of the Turkish Lira.

"We have no intention of separating from Syria"

The situation in our region is different. We use the Syrian Lira. We have no intention of separating from Syria. We also have no plans to introduce a new currency. The Caesar Act stipulates that we use either the Turkish lira, the Iraqi dinar or the dollar. These are all problematic options. We do not accept the Turkish Lira under any circumstances. We don't want to have anything to do with it. Iraq is a different country and that creates problems. If we use another currency, say the dollar, we need a centralized banking system, an exchange, and things like that. It would also be a political decision. We are part of this country and that is not on our agenda.”