In the midst of skyrocketing inflation and worsening economic situation, Syria on Sunday issued a new note of five thousand Syrian lira. It has now become the biggest note in circulation in Syria. The Syrian central bank said of the new note that it has been issued to meet market needs. This new banknote has a picture of a soldier saluting the Syrian flag on one side.
Syria has been struggling with domestic conflict for nearly a decade. Since the onset of the domestic crisis in 2011, the Syrian currency lira has been steadily weakening. 10 years ago, in 2011, a dollar was of 47 lira, which is now getting 1250 due to the lira and weakening. The rate in the open market is around 2,500.
Due to this weakening of the currency, the prices of food items and essential commodities in Syria have skyrocketed. According to the Central Statistics Bureau of Syria, the average inflation rate reached 200 percent in 2020 compared to 2019. Inflation of goods reached 300 percent. Prices of staple foods, such as lentils and vegetable oil, have increased by about 15 percent.
The epidemic restrictions have added to Syria’s economic difficulties. According to a United Nations estimate, around 80 percent of Syrians live below the poverty line.