Before 1947, the Arabic inscription of the word "qirsh" was spelled with the initial Arabic letter غ, after which the word began with ق. Until 1958, banknotes were issued with Arabic on the obverse and French on the reverse. Since 1958, English has been used on the reverses, hence the three different names for this currency. Coins used both Arabic and French until independence, then only Arabic.
During the period when Syria was a part of theOttoman Empire, which lasted about 400 years, theOttoman pound was its main currency. Following the fall of the Ottoman Empire and the placing of Syria under amandate (French occupation), theEgyptian pound was used in the territories under French and British mandates, includingLebanon,Transjordan andPalestine. Upon taking Lebanon and Syria under its separate mandate, the French government sought to replace the Egyptian currency and granted a commercial bank, theBanque de Syrie (a French affiliate of theOttoman Bank), the authority to issue a currency for territories under its new mandate.
The pound (orlivre in French) was introduced in 1919 and was set at a value of 20 francs.[6] As the political status of Lebanon evolved, the Banque de Syrie, which was to act as the official bank for Lebanon and Syria, was renamed theBanque de Syrie et du Grand-Liban (BSL). BSL issued the Syro-Lebanese pound for 15 years, starting in 1924. Two years before the expiration of the 15-year period, BSL split the Lebanese-Syrian currency into two separate currencies that could still be used interchangeably in either state. In 1939, the bank was renamed theBanque de Syrie et du Liban.
In 1941, the peg to the French franc was replaced by a peg tosterling of LS 8.83125 = £1, as a consequence of the occupation of Syria by British andFree French forces. This rate was based on the pre-war conversion rate between the franc and sterling. In 1946, following devaluation of the franc, the pound was pegged once again to the franc at a rate of LS 1 = 54.35 F. In 1947, Syria joined theInternational Monetary Fund (IMF) and pegged its currency to theU.S. dollar at LS 2.19148 = US$1, a rate which was maintained until 1961.
The Lebanese and Syrian currencies split in 1948. From 1961, a series of official exchange rates were in operation, alongside a parallel, black market rate which reflected the true market rate for Syrian pounds in Jordan and Lebanon where there was a healthy trade in the Syrian currency. The market was allowed to flourish because everybody, including government and public sector companies, needed it. The black market rate diverged dramatically from the official rate in the 1980s.[7] In July 2007, the currency was pegged to the IMF SDR (Special Drawing Rights).[8]
Monthly averages of Official USD:SYP Exchange rate from January 2011 to July 2016
There was acapital flight to nearby countries, includingLebanon,Jordan,Egypt andTurkey, as a result of theSyrian Civil War that started in 2011. In addition, Syria has been subject to sanctions imposed by theUnited States, theEuropean Union and other countries, which shut Syria out of the global financial system. To circumvent the sanctions, Syrians effected foreign transactions through banks in neighbouring countries, especially Lebanon.[9] As a result, the official exchange rate has deteriorated significantly, falling from LS 47 = US$1 in March 2011[10] to LS 515 = US$1 in July 2017 and 7500 = US$1 in April 2023 (after theLebanese liquidity crisis)
On 31 October 2019, Syrian PresidentBashar al-Assad mentioned in an interview that liberating territories had complex economic consequences. While it removed foreign-funded support for terrorists, it also cut off dollar inflows that stabilize local economies:
One factor which people are not aware of, is that the liberation of an area does not necessarily serve the Syrian pound, because by liberating an area, we are removing its access to dollars which were paid to the terrorists to cover their needs and expenses. This is one of the tools we benefited from. I mean that things are not absolute, and we cannot say that terrorists were serving us in this regard. Not every positive step has a positive impact. That is why I am saying that the issue is complicated.
On 5 December 2005, the selling rate quoted by theCommercial Bank of Syria was LS 48.4 = US$1.[citation needed] A rate of about LS 50 to US$1 was usual in the early 2000s,[citation needed] but the rate is subject to fluctuations. Since the start of thecivil war in 2011, the pound's unofficial exchange rate has deteriorated significantly. It was LS 47 = US$1 in March 2011 and LS 515 in July 2017.[citation needed] Since July 2007, the Syrian pound has been pegged to the IMF SDR (Special Drawing Rights).[8]
On 29 November 2019, following theLebanese protests, the black market rate was LS 765 = US$1, a decrease of 30% since the turmoil started in Lebanon a month earlier, as the protests led Lebanese banks to impose tight controls on hard currency withdrawals and transfers abroad, making it hard for Syrians to access funds held by them in those banks.[6][9]
The black-market rate fell to LS 950 on 2 December 2019, another 25% decrease,[14] while the official rate set by the central bank was LS 434 = US$1.
On 13 January 2020, the currency deteriorated further, as more than LS 1,000 was traded for US$1 in the black market, despite being valued at LS 434 = US$1 by the Syrian Central Bank.[15] During theCOVID-19 pandemic in Syria, the Syrian pound continued to fall against the U.S. dollar in the black market, where US$1 equaled more than LS 1,600 in May 2020.[16] A month later, the Syrian pound passed LS 2,000 against the dollar,[17][18] and a few days later, it passed LS 3,000 against the dollar.[19]
On 31 December 2022, the Syrian pound hit a new record low again on the black market, where each US$1 cost LS 7,150, twice as much as a year before.[22] In 2023, the exchange rate continued deterioration, reaching LS 15,000 per US$1.[23]
In 1921, cupro-nickel1⁄2 piastre coins were introduced, followed in 1926 by aluminium bronze 2p and 5p. In 1929, holed, nickel-brass 1pt and silver 10p, 25p and 50p were introduced. Nickel-brass1⁄2pt coins were introduced 1935, followed by zinc 1pt and aluminium-bronze2+1⁄2pt in 1940. During theSecond World War, brass 1pt and aluminium2+1⁄2p emergency coins were issued. These pieces were crudely produced and undated.
A new coinage was introduced between 1947 and 1948 in denominations of2+1⁄2p, 5p, 10p, 25p, 50p and LS 1, with the2+1⁄2p, 5p and 10p struck in cupro-nickel and the others in silver. Aluminium-bronze replaced cupro-nickel in 1960, with nickel replacing silver in 1968. In 1996, following high inflation, 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, withlatent images. On December 26, 2018, the Central Bank of Syria introduced a LS 50 coin for general circulation to replace the banknote of that denomination. Due to high inflation, only the 50p coin is in circulation. All other coins were worthless by December of 2022.[26]
In 1919, theBanque de Syrie introduced notes for 5p, 25p and 50p, LS 1 and LS 5. These were followed, in 1920, by notes for LS 1, LS 10, LS 25, LS 50 and LS 100. In 1925, theBanque de Syrie et du Grand-Liban began issuing notes and production of denominations below 25p ceased. Notes below LS 1 were not issued from 1930. In 1939, the issuing body again changed its name, to theBanque de Syrie et du Liban.
LS 1 note issued in 1957
Between 1942 and 1944, the government introduced notes for 5p, 10p, 25p and 50p. In the early 1950s, undated notes were issued by the Institut d'Emission de Syrie in denominations of LS 1, LS 5, LS 10, LS 25, LS 50 and LS 100, followed by notes dated 1955 for LS 10 and LS 25. The Banque Centrale de Syrie took over paper money issuance in 1957, issuing the same denominations as the Institut d'Emission.
In 1958, the French language was removed from banknotes and replaced by English. Notes were issued for LS 1, LS 5, LS 10, LS 25, LS 50, LS 100 and LS 500. In 1966, the design of the LS 25, LS 50, and LS 100 notes were changed. In 1976 and 1977, the designs changed for all the denominations except the LS 500 note.
In 1997 and 1998, a new series of notes was introduced in denominations of LS 50, LS 100, LS 200, LS 500 and LS 1,000, with the lower denominations replaced by coins. In 2009, the LS 50, LS 100, and LS 200 pound notes were changed with an entirely new design.[27]On 2 July 2014, a new LS 500 note was introduced, followed by a LS 1,000 note on 30 July 2015, a LS 2,000 note on 2 July 2017, and a LS 5,000 note on 24 January 2021.[28]
On 27 July 2010, the Central Bank of Syria issued a new series of banknotes dated 2009 in denominations of LS 50, LS 100, and LS 200. The notes were designed byAustrian banknote designerRobert Kalina.[29]The Central Bank of Syria issued new LS 500 and LS 1,000 notes in 2014 and 2015, respectively. The reverse of the new LS 1,000 note features an image of aRoman mosaic painting discovered inDeir al-Adas.[30] Former PresidentBashar al-Assad was added to the LS 2,000 note in 2017. A LS 5,000 note was released in January 2021.
^due to fast depreciation, LS 5, and LS 10 coins and 25 pounds coin are practically worthless as of December 2021.50 Liras l([1]). Retrieved on 2020-05-20.
^Linzmayer, Owen (2013). "Syria".The Banknote Book. San Francisco, CA: www.BanknoteNews.com.
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