Syrian pound

Syrian pound. The Syrian pound is the official currency of the Syrian Arab Republic, issued by the Central Bank of Syria. It is subdivided into 100 piastres, though these subunits have been rendered obsolete by chronic inflation. The currency's stability has been profoundly affected by the ongoing Syrian civil war and international sanctions, leading to severe devaluation.

History

The Syrian pound was introduced in 1919, following the dissolution of the Ottoman Empire, initially as the currency of the French Mandate for Syria and the Lebanon. It replaced the Ottoman lira at par and was pegged to the French franc. After Syria gained independence, the currency was managed by the Syrian-Lebanese Currency Council until the establishment of the Central Bank of Syria in 1956. Major devaluations occurred following the Six-Day War in 1967 and the Yom Kippur War in 1973. The Hafez al-Assad era saw periods of managed exchange rates, but the Syrian civil war, beginning in 2011, triggered a catastrophic collapse in its value, exacerbated by sanctions from the United States and the European Union.

Coins

Early coinage under the French Mandate featured denominations in piastres and featured symbols like the Cedars of Lebanon. Following independence, coins were minted with national symbols, including the Eagle of Saladin. Common denominations included 1, 2, 5, 10, and 25 pounds, with compositions shifting from cupronickel to cheaper aluminum or steel over time. Due to rampant inflation, coin production became economically unviable, and coins have largely disappeared from daily circulation, rendered obsolete by the vastly depreciated banknote values needed for basic transactions.

Banknotes

Banknotes are issued by the Central Bank of Syria and have undergone numerous series reflecting political changes. Early notes depicted landmarks like the Citadel of Aleppo and the Temple of Bel in Palmyra. Modern series feature former presidents Hafez al-Assad and Bashar al-Assad, as well as historical figures such as Salah ad-Din Yusuf ibn Ayyub. Due to hyperinflation, high-denomination notes like 5,000 pounds have become common, while lower denominations are virtually worthless. The design and security features have evolved, but the economic crisis has led to a widespread reliance on these paper notes for all monetary transactions.

Exchange rates

The official exchange rate, set by the Central Bank of Syria, has diverged drastically from the black market rate since the start of the Syrian civil war. Prior to the conflict, the pound was loosely pegged to the U.S. dollar. International isolation and sanctions have led to a multi-tiered system, with preferential rates for loyalists and a vastly depreciated parallel market rate used by most citizens. The currency has repeatedly hit record lows against the dollar and the euro, with its value sometimes falling daily. Neighboring countries like Lebanon and Jordan have significant black markets for the currency due to refugee flows and trade.

Economic impact

The collapse of the Syrian pound has been a primary driver of a severe humanitarian crisis, plunging much of the population into poverty according to the United Nations. Hyperinflation has devastated savings, wages, and purchasing power, leading to widespread food insecurity. The government in Damascus has implemented sporadic measures like raising public sector salaries or changing official rates, but these have failed to stabilize the economy. The currency crisis has fueled a dollarized shadow economy, enriched war profiteers, and crippled the state's ability to provide basic services, further entrenching the economic divisions wrought by the conflict.

Category:Economy of Syria Category:Currencies of Asia