This depreciation reflects the underlying weakness of the government’s financial position. Political and territorial advances in favour of President Bashar al-Assad -- most recently, the deployment of government forces along the Turkish border to the east of the river Euphrates -- have not yielded clear economic benefits.
Sustained political and economic turbulence in Lebanon could further reduce the supply of US currency for the Syrian market.
The US presence will complicate the government's reassertion of control over oil fields, but Russia could help resolve this problem.
Pressure on business to support the exchange rate, with the threat of 'anti-corruption' investigations, could sap private sector confidence.
US sanctions and crises in Lebanon and Iraq will reduce Iran’s ability to contribute to the Syrian economy.
