Syrian Pound (SYP) - Currency of Syria

Everything You Need To Know About The Syrian Currency

• During the Ottoman Empire, nearly 400 years ago, the currency in circulation was called the Turkish Lira.
  
• From 1947 to 1961 the Syria currency was pegged to the https://www.thomascook.in/foreign-exchange/us-dollar. However, it is currently not pegged to any international currency.
  
• The most often used coins are 1 Pound, 2 Pounds, 5 Pounds, 10 Pounds, and 25 Pounds.
  
• The most frequently used banknotes include 5 Pounds, 10 Pounds, 25 Pounds, 50 Pounds, 100 Pounds, 200 Pounds, 500 Pounds, 1000 Pounds.
  

History Of the Syrian Pound (SYP)

The Syrian Pound (SYP) is the official currency of Syria, which has a long and rather complex history. It has undergone several changes since its introduction, and its value has fluctuated over the years. Here is a brief history of the Syrian Pound.

The Syrian Pound was first introduced in 1919 when Syria was a French mandate. At that time, the currency was pegged to the French Franc. After the end of French rule in 1946, the Syrian government continued to maintain the peg with the French Franc, which remained in place until the early 1950s.

In 1950, the Syrian government abandoned the peg to the French Franc and pegged the Syrian Pound to the US Dollar instead. This decision was made in response to the Bretton Woods agreement, which established the US Dollar as the world's reserve currency. The peg to the US Dollar remained in place until the early 1970s.

In the early 1970s, Syria shifted its currency peg again, this time to the International Monetary Fund's Special Drawing Rights (SDR). The SDR is an international reserve asset created by the IMF in 1969, and it is composed of a basket of currencies, including the US Dollar, Euro, Japanese Yen, British Pound, and Chinese Yuan.

In 1978, Syria once again abandoned the SDR peg and switched back to the US Dollar. However, in the late 1990s, the Syrian Pound began to devalue rapidly against the Dollar, and the government was forced to introduce capital controls to prevent the outflow of foreign currency.

The Syrian Pound's value remained relatively stable throughout the 2000s, but the outbreak of civil war in 2011 caused a sharp decline in the currency's value. In 2011, the Syrian Pound was trading at around 50 SYP to the US Dollar. By 2015, the currency had fallen to around 300 SYP to the Dollar. As of 2023, the Syrian Pound remains heavily devalued, with a rate of approximately 2,512.53 SYP to the US Dollar.

Factors affecting the Syrian Pound (SYP)

The value of the Syrian Pound has been greatly affected by the ongoing conflict in the country. In recent years, the Syrian Pound has undergone a significant depreciation, which has negatively impacted the economy of Syria and the standard of living of its citizens. Let us look at the factors affecting the Syrian Pound and their impact on the economy of Syria.

1. Political instability

The Syrian Pound has been greatly affected by the ongoing civil war in Syria, which has led to a great deal of political instability. This instability has caused a loss of confidence in the Syrian economy, leading to a decrease in demand for the Syrian Pound and a subsequent decrease in its value.

2. Economic sanctions

The imposition of economic sanctions by the United States and the European Union on Syria has restricted Syria's ability to import essential goods and services, leading to a decrease in demand for the Syrian Pound and a subsequent decrease in its value.

3. Inflation

High inflation rates in Syria have also contributed to the depreciation of the Syrian Pound. As the value of the Syrian Pound decreases, the cost of living in Syria increases, leading to a decrease in the purchasing power of its citizens.

4. Dependency on oil

Syria's economy is heavily dependent on its oil exports, and the decline in oil prices has impacted the rate of the Syrian Pound. As the price of oil decreases, the revenue generated from oil exports decreases, leading to a decrease in demand for the Syrian Pound and a subsequent decrease in its value.

5. Lack of foreign investment

The ongoing conflict in Syria has led to a decrease in foreign investment in the country. Without foreign investment, the Syrian economy is unable to generate revenue, leading to a decrease in demand for the Syrian Pound and a subsequent decrease in its value.