Residents and traders in Deir Ezzor governorate, eastern Syria, are facing a new economic crisis. Some money changers and merchants are refusing to accept older issues of foreign currency, or are taking them only in exchange for a high exchange “commission” that can reach 10% of the amount, under the label of “deduction”
This phenomenon, concentrated mainly on $100 bills issued before 2013 (known locally as the “white dollar”) disrupted, amid accusations that speculators are manufacturing the crisis to make illicit profits.
deduction: An extra tax on savings
In the city’s main market, Obeid al-Nasser, a building materials trader, told Enab Baladi that daily financial transactions have become a “battle” to convince the other party to accept the currency.
Al-Nasser said suppliers in other governorates refuse to take the older print, forcing them to deal with money changers who deduct $10 from every banknote.
He added that they are merely intermediaries bearing the burden of unofficial decisions imposed by “major money changers.”
The hardship is not limited to traders. Civilians also find themselves the biggest victims. Rawan al-Hamid said she was forced to sell her savings in $100 bills for only $90 each to cover the costs of an emergency medical treatment.
She added that the $10 the money changer “took” represents a huge gap in their daily living, especially with what she described as “insane” price hikes.
A manufactured crisis or a structural flaw?
According to some exchange shop owners Enab Baladi met in Deir Ezzor, the crisis is not coincidental, but rather the result of weak financial oversight and the spread of the black market.
Ahmad, a day laborer, described it as an “obvious game,” where money is bought from citizens at a low rate on the pretext that it is old, then circulated among major traders at full value or shipped to other areas.
Money changers’ justifications range from difficulties in shipping these bills abroad, to their alleged rejection by Lebanese and Turkish banks, which are vital channels for Syria’s market. Local residents describe these justifications as “flimsy excuses” used for exploitation.
Syrian Central Bank: No official decisions
A source at the Syrian Central Bank, who asked not to be named, denied that any decision has been issued to ban circulation of older prints or impose discounts on them.
The source told Enab Baladi that what is happening is “manipulation by some bad actors to stir confusion in commercial activity.”
The source said the bank is “working to find quick solutions to prevent citizens’ losses,” noting that Syrian laws prohibit tampering with the value of officially circulated currencies. The source added that the government has not issued any guidance related to the issuance date of foreign currency, as long as the bills are genuine and not counterfeit.
Despite the official denial, the reality in Deir Ezzor’s markets remains governed by a de facto authority imposed by major money changers.
Residents are calling for effective oversight mechanisms that go beyond media statements, such as obliging licensed exchange companies to accept all issues, and activating consumer protection patrols to pursue manipulators.
White and blue
The United States issued a new $100 banknote on 8 November 2013, redesigned with a set of features including an orange watermark on the right side of the bill, and a 3D blue security ribbon running downward in the middle of the note, along with images of a quill, an inkwell, and a bell.
Many residents in Arab countries, such as Syria and Lebanon, refer to this issue as the “blue dollar,” because it was the first $100 note to feature a blue line.
The main purpose of the redesign was to deter counterfeiters and make it easier to detect fake banknotes.
In 1996, as color photocopiers, inkjet printers, and computer imaging technology improved, the United States designed a new $100 bill with a completely new layout aimed at preventing counterfeiting. A watermark was added to the right side of the banknote, and it featured better quality, a larger portrait of the figure appearing on all versions of the currency, Benjamin Franklin, and fine-line printing in the background that is difficult to replicate.
At the time, optically variable ink was also added, changing from green to black when viewed from different angles.
Many residents in Arab countries, such as Syria and Lebanon, refer to this issue as the “white dollar.”
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