Why is Ankara pouring Turkish liras into Syria?
Taking advantage of Syria’s currency havoc, Ankara has funneled Turkish liras into “liberated” areas in northern Syria, but any plan to fully sideline the Syrian pound in those areas appears unrealistic.
The dizzying nosedive of the Syrian pound on the eve of fresh US sanctions has unleashed developments that threaten to economically cut off northern Syria from Damascus. Amid the currency upheaval, Turkey has poured Turkish liras into northern enclaves under its military control as well as into rebel-held Idlib, where it maintains a heavy military presence. The trend suggests that Ankara might be seeking a de facto “Turkish lira zone” atop its military zones, but this looks like a tall order.
The Syrian pound, which traded at 940 pounds to the dollar in January, hit 3,000 against the greenback June 8 amid fears over the impact of fresh US sanctions under the Caesar Act, expected to kick in June 17, coupled with jitters from the banking turmoil in neighboring Lebanon. Seeing Syria’s currency crisis as an opportunity, Ankara quickly took action, although its own currency has been badly battered over the past two years.
Abdul Rahman Mustafa, head of the Syrian Interim Government, which is backed by and based in Turkey, said June 11 that small Turkish lira banknotes were being put into circulation via branches of Turkey’s postal service operating in northern Syria. According to Mustafa, “Basic food items and fuel have been priced in Turkish liras. Public servants are also receiving their salaries in Turkish liras. Some private businesses in the liberated areas have also begun to pay salaries in Turkish liras.”
Following Mustafa’s remarks, trade chambers and city councils in Azaz, Akhtarin, Jarablus, Marea and Sawran made statements encouraging the use of the Turkish lira.
