Syrian Currency: History, Challenges, and Opportunities

The Syrian currency, also known as the Syrian pound, has a long and complex history. It was first introduced in 1947, replacing the Lebanese pound.

One of the main challenges facing the Syrian currency is inflation, which has been a persistent problem since the 1970s. The Syrian government has implemented various measures to control inflation, but it remains a significant issue.

The Syrian pound has also been affected by the country's economic sanctions, which were imposed in 2011. These sanctions have made it difficult for Syrians to access foreign currency and has led to a shortage of US dollars.

The challenges facing the Syrian currency are significant, but there are also opportunities for improvement. The Syrian government has taken steps to stabilize the currency and improve the country's economic situation.

The Syrian currency has a rich and complex history. The Ottoman pound was the main currency for about 400 years until the Ottoman Empire fell.

In 1919, the French government introduced the pound, also known as the livre in French, which was set at a value of 20 francs. The Banque de Syrie was granted the authority to issue this currency for territories under French mandate.

The Banque de Syrie issued the Syro-Lebanese pound for 15 years, starting in 1924, and later split the currency into two separate ones that could still be used interchangeably. The bank was renamed the Banque de Syrie et du Liban in 1939.

The pound was pegged to the French franc in 1946 at a rate of LS 1 = 54.35 F, following the devaluation of the franc.

The French Mandate had a significant impact on the Syrian currency. The Ottoman pound was used for about 400 years, but after the fall of the Ottoman Empire, the Egyptian pound was introduced in the territories under French and British mandates.

The French government sought to replace the Egyptian currency with a new one, and the Banque de Syrie was granted authority to issue a currency for the territories under its mandate. The pound, or livre in French, was introduced in 1919 and was set at a value of 20 francs.

The Banque de Syrie, which was later renamed the Banque de Syrie et du Grand-Liban, issued the Syro-Lebanese pound for 15 years starting in 1924. This currency was used interchangeably in Lebanon and Syria.

In 1941, the peg to the French franc was replaced by a peg to sterling, with a rate of LS 8.83125 = £1. This change was made as a result of the occupation of Syria by British and Free French forces.

The Syrian Civil War had a significant impact on the country's economy and currency. It started in 2011 and led to a capital flight to nearby countries, including Lebanon, Jordan, Egypt, and Turkey. Syrians had to find ways to circumvent the sanctions imposed by the US, the EU, and other countries, which shut Syria out of the global financial system. This led to a significant deterioration of the official exchange rate, from LS 47 = US$1 in March 2011 to LS 515 = US$1 in July 2017 and 7500 = US$1 in April 2023.

The war also had complex economic consequences, as Syrian President Bashar Al-Assad mentioned in an interview. He stated that liberating territories removed foreign-funded support for terrorists, but also cut off dollar inflows that stabilized local economies. This had a negative impact on the Syrian pound, making it less stable.

The Syrian regime's government has not taken actual monetary measures to address the economic situation, despite repeated calls from officials and experts. The Central Bank of Syria has insisted on not issuing a higher denomination banknote, despite experts agreeing on its necessity.

The Syrian pound has been pegged to the IMF SDR since July 2007, which has led to fluctuations in its value over the years. The currency has been subject to significant changes, particularly since the start of the civil war in 2011.

The official exchange rate set by the central bank was LS 434 = US$1 on November 29, 2019, but the black market rate was significantly higher, at LS 765 = US$1. This difference highlights the volatility of the Syrian pound.

Here's a breakdown of the exchange rate over time:

The Syrian pound has continued to deteriorate, with a record low of LS 25,000 per US$1 in 2024.

The dollar value of the Syrian Pound has been on a wild ride in recent years. The highest exchange rate in the last 10 years was on September 9, 2024, when each US Dollar was worth 13,153 Syrian Pounds.

The lowest exchange rate in the last year was on January 15, 2024, when each US Dollar was worth 12,690 Syrian Pounds. However, the exchange rate has fluctuated significantly since then, with the current rate being 12,888 Syrian Pounds per US Dollar.

As of January 15, 2025, 100 US Dollars is equivalent to 1,288,793 Syrian Pounds. The exchange rate at this time is 12,888 Syrian Pounds per US Dollar.

The US Dollar has decreased -0.70% year-to-date against the Syrian Pound, but it has appreciated +5,746.37% against the Syrian Pound over the past 10 years.

Here's a breakdown of the exchange rate over the last year:

As you can see, the exchange rate has been quite volatile, but the US Dollar remains a stronger currency compared to the Syrian Pound.

Coins have a rich history in Syria, with various metals and designs being used over the years. In 1921, cupro-nickel 1⁄2 piastre coins were introduced.

The first aluminium bronze coins were introduced in 1926, with 2p and 5p denominations. In 1929, holed, nickel-brass 1pt and silver 10p, 25p, and 50p coins were introduced.

In 1935, nickel-brass 1⁄2pt coins were introduced, followed by zinc 1pt and aluminium-bronze 2+1⁄2pt coins in 1940. During the Second World War, brass 1pt and aluminium 2+1⁄2p emergency coins were issued.

These emergency coins were crudely produced and undated. A new coinage was introduced between 1947 and 1948 in denominations of 2+1⁄2p, 5p, 10p, 25p, 50p, and LS 1.

The 2+1⁄2p, 5p, and 10p coins were struck in cupro-nickel, while the others were in silver. Aluminium-bronze replaced cupro-nickel in 1960, with nickel replacing silver in 1968.

In 1996, new coins were introduced in denominations of LS 1, LS 2, LS 5, LS 10, and LS 25, with the LS 25 being bimetallic. In 2003, LS 5, LS 10, and LS 25 coins were issued with latent images.

The Central Bank of Syria introduced a LS 50 coin in 2018 to replace the banknote of that denomination.

The Central Bank of Syria has a clear stance on removing zeros from the Syrian currency. They believe it's not a simple matter and should be accompanied by other economic policies to support the national economy.

According to Eyad Bilal, the Director of Treasury at the bank, inflation in Syria is not at a terrifying level, and the current highest denomination (5,000 pounds) is sufficient to complete transactions and transfers.

Removing zeros would be an isolated measure without a new economic policy, as pointed out by Dr. Joseph Daher, Affiliate Professor at the European University Institute.

The Central Bank of Syria has spoken out against the proposal to remove zeros from the Syrian currency. They claim that changing the currency and removing zeros is not a simple matter.

Several countries have tried this measure in the past, with varying degrees of success. Some have succeeded, while others have failed, and the Central Bank is cautious about taking a similar step.

According to the Director of Treasury, Eyad Bilal, inflation in Syria is not currently at a terrifying level. This suggests that the economic situation is not dire enough to warrant drastic measures like removing zeros from the currency.

The current highest denomination of the Syrian currency is 5,000 pounds, which is sufficient for most transactions and transfers. This implies that the existing currency is still functional and does not need to be changed.

Removing zeros from the currency would be an isolated measure, not part of a new economic policy. This is a concern, as economic policies are often most effective when implemented as part of a larger strategy.

High inflation rates in Syria are linked to internal and external causes. The massive devaluation of the Syrian pound is one of the main causes, reflecting the destruction of the Syrian economy.

The destruction of the oil and tourism sectors, major sources of foreign currency before 2011, has significantly contributed to the devaluation of the Syrian pound. The halt of foreign direct investments after 2011, which had amounted to more than $8 billion between 2005 and 2011, has also strengthened the devaluation of the Syrian currency.

The enormous destruction in the manufacturing and agriculture sectors has led to a collapse of the local productive capacity and a decrease in export volume. This has resulted in the state losing major sources of income and being forced to increase its imports to meet the local demand.

The trade balance has remained severely negative, translating into ongoing pressures to buy foreign currencies, especially in the black market. This has increased the downward pressures on the Syrian pound.

Sanctions have increased import costs because many countries and private companies do not want to trade with Syria. The financial crisis in Lebanon in October 2019 has also affected the situation, causing a large capital flight from Syria, possibly amounting to billions of dollars.

The Lebanese crisis played a role in the further devaluation of the Syrian pound, particularly after Lebanese banks imposed strict restrictions on obtaining and withdrawing dollars.