SYP - Syrian Pound

Syrian Pound overview

The Syrian Pound was first introduced in 1947, replacing the Syrian Lira at par, following the country's independence. Over the years, the pound has faced significant fluctuations in its value, particularly in the wake of the Syrian Civil War, which has severely impacted the country's economy. 

Hyperinflation and economic sanctions have further devalued the Syrian Pound, leading to a rise in the use of foreign currencies such as the US Dollar and Euro in both formal and informal transactions. Despite these challenges, the Syrian Pound remains the official currency for day-to-day transactions within the country.

History of the Syrian Pound SYP

Before 1947, the term "qirsh" in Arabic was written with the letter غ, but later it was changed to the letter ق. Before 1958, banknotes featured Arabic on the front and French on the back. After 1958, English replaced French on the back of the banknotes.

Ottoman Empire Period

Before the Syrian Pound was introduced, Syria was under the rule of the Ottoman Empire for 400 years. During this period, the Ottoman lira was the official currency.

Influence of the Egyptian Pound

After the collapse of the Ottoman Empire and Syria coming under French mandate, the Egyptian pound became the common currency for many regions, including Syria, Lebanon, Transjordan, and Palestine.

Introduction of the Syrian Pound

In 1919, the French government introduced the Syrian Pound, which was initially pegged to the value of 20 French francs. During this period, the Syrian Bank (which later became Banque de Syrie et du Grand-Liban) was responsible for issuing currency for both Syria and Lebanon.

By 1939, the bank changed its name to Banque de Syrie et du Liban, and separate Syro-Lebanese currencies were issued for the two countries but continued to circulate interchangeably.

Syrian Pound denominations

Syrian coin denominations

Historically, the Syrian Pound used various types of coins. From 1921, piastre coins made of copper-nickel, aluminum-bronze, and silver were issued. However, due to prolonged inflation, coins of smaller denominations gradually lost their value. Since 2018, only the 50 Syrian Pound coin remains in circulation, while other coins have almost no value. 

The Syrian coin denominations that were once used included:

• 1 piastre

• 2 piastres

• 5 piastres

• 10 piastres

• 25 piastres

• 50 piastres

Syrian banknote denominations

The first banknotes of the Syrian Pound were issued in 1919, with denominations ranging from 5 piastres to LS 5. From 1958, French was replaced with English on the banknotes.

In recent years, the Central Bank of Syria has issued higher denominations such as LS 2,000 (in 2017) and LS 5,000 (in 2021) to combat inflation.

The Syrian banknote denominations that have been issued over time include:

• 5 LS 

• 10 LS 

• 50 LS 

• 100 LS 

• 500 LS 

• 1,000 LS 

• 2,000 LS (introduced in 2017)

• 5,000 LS  (introduced in 2021)

Syrian Pound Exchange Rate

The Syrian Civil War, which has lasted since 2011, has not only devastated infrastructure and people's lives but also caused a severe depreciation of the Syrian Pound (LS). From 47 LS per 1 US dollar in 2011, the official exchange rate surged to approximately 7,500 LS per 1 US dollar in 2023.

The main causes of this depreciation include:

• Capital flight: Due to the unstable situation, investors and citizens moved their money abroad, particularly to neighboring countries like Lebanon, Jordan, Egypt, and Turkey.

• International sanctions: Sanctions from the US and the European Union have isolated Syria from the global financial system, limiting access to hard currencies like the US dollar.

During the chaotic period, the black market exchange rate has continuously hit new low records. From 950 LS per 1 US dollar in 2019, the black market rate increased to 7,150 LS per 1 US dollar by the end of 2022, and it remains significantly higher than the official rate.

The black market exchange rate reflects the loss of confidence in the Syrian Pound and the high demand for foreign currency amid the economic collapse.

In some areas controlled by Turkey, such as Afrin and Jarablus, the Syrian Pound is gradually being replaced by the Turkish lira in daily transactions. This not only reflects the devaluation of the Syrian Pound but also highlights the economic and political division between territories.

Although the path to recovery is long, the stability of the exchange rate will be crucial in rebuilding Syria’s economy and helping the country emerge from the crisis. The Syrian Pound is not just a means of payment but also a testament to the historical and economic upheavals the country has faced. From the Ottoman rule, French control, to the modern-day war period, this currency has always reflected a part of Syria’s story. Despite facing many challenges, the Syrian Pound remains a symbol of a resilient nation, enduring hardships to survive.