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INTRODUCTION
To inform humanitarian cash programming, REACH, in partnership with the Cash-Based Responses Technical Working Group (CBR-TWG) and Northeast Syria (NES) Cash Working Group (CWG), conducts monthly Market Monitoring Exercises in northern Syria to assess the availability and prices of 36 basic commodities that are typically sold in markets and consumed by average Syrian households, including food and non-food items, water, fuel, and cellphone data.
Of these, 18 items comprise the Survival Minimum Expenditure Basket (SMEB; see below), which represents the minimum, culturally adjusted items required to support a 6-person household for a month.
Data was collected this month (between 12-17 December 2019) by ACTED, CARE Shafak, GOAL, People In Need (PIN), Solidarités International, Violet, and Watan.
The accompanying data from the month of December is disseminated monthly and is distributed through partners across the humanitarian community.
KEY DEVELOPMENTS
Coverage
Although limited, NES CWG partners were able to support data collection in the month of December in Northeast Syria (NES). Assessed sub-districts this month were Menbij, Ain Al Arab (Kobane), Al-Hasakeh, Be’r Al-Hulo Al-Wardeyyeh, Quamishli, Amuda, Qahtaniyyeh, Al-Malikeyyeh, Jawadiyah, Ya’robiyah and Ar-Raqqa. Due to limited coverage this month, findings and price comparisons will be presented at the community level throughout this output. Dotted lines in the graphs indicate lack of data for the months of October and November.
SMEB cost increased across assessed communities
The regional median SMEB cost was recorded at 95,467 SYP. At the community level, the SMEB cost increased between 16%-33% compared to the last Market Monitoring Exercise for NES in September. However, the SMEB cost decreased in US Dollars (USD) and was recorded at 111 USD in December, compared to 131 USD in September. This was mainly explained by the rapid depreciation of the SYP against foreign currencies.
Low purchasing power and insecurity affect access to markets
Key informants (KIs) reported multiple barriers to accessing markets across all assessed communities. The most commonly reported barriers were the high volatility in prices coupled with low purchasing power. Insecure roads and transportation difficulties were also reported this month, as well as general obstacles to restocking. These challenges reportedly led to many items being unavailable.
Increase in USD/SYP exchange rate
The Syrian pound plummeted in December. The informal exchange rate was recorded at 844 SYP to the US Dollar, the highest ever recorded by the Market Monitoring Exercise. This amounted to a 37% increase compared to September 2019, where the exchange rate was 615 SYP to the US Dollar. The current rate marked the inflation of the Syrian Pound by 100% over the past 12 months. This increasing trend in the informal exchange rate has been recorded across Syria. Reasons behind the continued devaluation of the USD/SYP exchange rate are manifold; however, they are primarily related to the low USD reserves in the country coupled with increased international sanctions against Syria, leading to volatility and uncertainty on the country’s financial market.