Will the dollar exchange rate rise or fall during the reconstruction phase?
Will the dollar exchange rate rise or fall during the reconstruction phase?
Everyone believes that the inflow of billions of dollars for investment means those dollars will be available for sale in the market.
However, the reality is that those billions are in the form of factories, equipment, means of production, and fixed assets.
The increase in the amount of dollars available for sale will be a small percentage of those funds.
During the reconstruction phase, demand for the dollar will increase due to the import of means of production, raw materials, and other items.
This will inevitably lead to a rise in the dollar exchange rate.
However, it will not lead to a decline in the purchasing power of income in general, because salaries will be higher due to the increased demand for labor, coupled with a significant decline in the unemployment rate.
With this, demand and consumption will increase, thus increasing production and stimulating the economy.
At a later stage, when exportable production increases and replaces imports, the dollar exchange rate will inevitably decline, and the purchasing power of the Syrian pound and salaries will rise.
Economic expert George Khazam
