Syrian currency loses more value as sanctions hit

RAQQA, Syria (AP) — The Syrian lira has dropped to a new record this week, increasing prices and affecting an economy in crisis.

This week the Syrian currency dropped to a record of 3,500 pounds to the dollar, making life more expensive for a population already enduring almost 10 years of war.

Raqqa residents say they are struggling with the dire economic situation as a new wave of United States sanctions against the country goes into effect this month.

Washington's Caesar Syria Civilian Protection Act envisages sanctions on Syrian troops and others responsible for atrocities committed during Syria's civil war.

"The Caesar law (U.S. sanctions act), in my opinion, is not hurting the government, it is hurting the public," says Mohammed Al-Hussein, owner of computers shop.

The sanctions also aim to prevent anyone around the world from doing business with Syrian officials or state institutions or participate in reconstruction plans.

The implementation of the act is expected to increasingly strangle the country amid the harsh economic crisis.

The currency crash is bringing more Syrians into poverty as their purchasing power dwindles.

"The (U.S.) dollar used to be 600-700 lira, now it is 3,200. This (price) difference is being paid by the civilians," says shop owner Abu Salama.

The Syrian economy has been shrinking since the country's conflict began with anti-government protests in March 2011 that later turned into a full-blown war.

The economy has been also suffering for years from widespread corruption, western sanctions and most recently a severe economic and financial crisis in neighbouring Lebanon.

Before the crisis worsened recently, eight out of 10 Syrians were living below the poverty line, making less than $100 a month, according to the United Nations.

For displaced person Umm Ahmed, the rise of the dollar exchange rate means she cannot buy medication for her sister.

"Our lives are getting worse, I swear, we need a solution. The Syrian people are going to starve. Actually, they are already starving," she says.

The Syrian government last week condemned the U.S. sanctions against the country, calling the measures "economic terrorism" that will increase the suffering of the Syrian people.

A Foreign Ministry statement said Washington's sanctions act is based on "lies and fabricated claims by enemies of the Syrian people."

The first wave of sanctions will be imposed on June 17.

Three other stages will follow before the end of August, according to a member of the Caesar Act team.