Syrian markets are experiencing severe confusion and daily disputes between citizens and merchants as the end of July 2026 approaches, when the old Syrian currency will lose its legal tender status. Many businesses and transport operators are refusing to accept the old banknotes, while the Central Bank of Syria has remained silent.
The silence of Central Bank officials, and their refusal to issue a statement or clarify whether the old and new currencies must remain in circulation together until the end of July, reflects concerns that such a position could affect the stability of the Syrian pound’s exchange rate. Exchange rate stability remains the central focus of the bank’s decisions, statements, and banking policies.
The executive instructions for the decree replacing the old currency require all businesses and financial institutions to accept both issues until the end of the month. Although exchanges will remain available at Central Bank branches for the next five years, on-the-ground conditions point to a severe crisis of confidence between citizens and business owners.
A source close to the Central Bank of Syria, who requested anonymity, said the bank was proceeding with its decision to end the old currency’s legal tender status at the end of July because the measure had contributed to exchange rate stability.
The source said the old banknotes had served as a “tool” for exchange rate speculation in the markets. The Central Bank’s policy of restricting liquidity, together with removing the old pound from circulation, is helping strengthen the new pound against the US dollar, according to the source.
Individual Decisions in Damascus
In Damascus and its surrounding countryside, restaurants, shops, businesses, and transport operators have taken over part of the Central Bank’s role by announcing that they will no longer accept old Syrian pound banknotes of any denomination, from the old 500 pound note to the old 5,000 pound note. Many have displayed signs stating their refusal.
The move has angered citizens because it violates the Central Bank’s instructions. Most people still receive their wages in the old currency, particularly in the 2,000 and 5,000 pound denominations, while businesses refuse to accept the notes. This indicates that the old currency remains widely available, although at lower levels than before.
Citizens told Enab Baladi that small new banknotes in denominations of 10 and 25 pounds, equivalent to 1,000 and 2,500 old pounds, are scarce. They said the denominations circulating most widely are 100, 200, and 500 pounds.
Citizens attributed the shortage to financial and banking institutions responsible for exchanging the currency, which they said focus on replacing old banknotes with large new denominations.
Old Banknotes Remain Widespread in Aleppo
In Aleppo, currency circulation differs between the city and the surrounding countryside, which was previously controlled by the opposition before the fall of the former Syrian regime.
Enab Baladi correspondents said the old currency remains widespread in the city, particularly lower-value banknotes such as the 1,000 and 2,000 pound notes. Circulation of the 5,000 pound note has declined over the past several weeks.
In recent days, Enab Baladi observed wider circulation of the new currency, particularly the larger 200 and 500 pound denominations, while smaller denominations remained less available.
In rural areas, particularly the northern countryside formerly controlled by the opposition, businesses and institutions refuse to accept the old Syrian currency. The new currency is more widely available than in the city and circulates in all denominations.
The Turkish lira, however, remains the currency most widely used in the area because it was used throughout the years of the Syrian revolution.
Conditions in Idlib are similar to those in the Aleppo countryside. The Turkish lira remains widely used, while the new Syrian currency has seen limited circulation in recent weeks.
Hama Relies on Old Banknote Denominations
Enab Baladi’s correspondent in Hama governorate said local markets face a severe shortage of small new Syrian banknotes in denominations of 10, 25, and 50 pounds. This has pushed merchants and shopkeepers to rely heavily on old 500, 1,000, 2,000, and 5,000 pound notes to complete daily transactions.
The correspondent said money changers also lack small denominations. The problem is not limited to street vendors but extends to retail shops, which struggle to provide customers with change.
According to the correspondent, the shortage has forced people to use smaller denominations of the old currency, reflecting an acute liquidity crisis affecting basic daily transactions across the governorate.
Economist Proposes Solutions for Central Bank
Syrian economist and financial expert Mohammad Taysir al-Faqih told Enab Baladi that the Central Bank of Syria could adopt several proposals and solutions to address violations in the markets and ensure that the new Syrian currency reaches all citizens.
The proposals include:
- Immediately issuing a Central Bank statement ending the dispute by confirming that the old currency will retain its legal tender status until the end of July.
- Extending the period in which both currencies remain valid and adding a flexible period of between 30 and 60 days to absorb existing liquidity.
- Simplifying bank exchange procedures and removing daily restrictions on withdrawals and deposits of the new currency.
- Providing mobile exchange channels by deploying banking vehicles to rural and remote areas.
- Requiring public and private banks to accept old banknotes without fees or complicated procedures.
Market Oversight Measures
Faqih stressed the need to activate consumer protection bodies and deploy intensive inspection patrols to regulate businesses that refuse to accept the old currency. He also called for immediate deterrent measures, including closing noncompliant shops and revoking transport operators’ licenses.
Despite the limited time remaining before the old pound loses its legal tender status, Faqih said authorities could establish hotlines for complaints, allowing citizens to report businesses that refuse the currency.
Government service institutions should also be required to continue accepting payments for bills and fees in the old currency.
Faqih also proposed banking and technical measures, including:
- Accelerating the digital transition in markets and requiring shops to provide electronic payment options.
- Temporarily exempting electronic retail transactions from payment fees to encourage the transition.
- Opening exchange windows at key locations, including transport terminals, Syrian Trade Corporation centers, and municipalities.
What About Hasakah and Deir Ezzor?
According to Faqih, the Central Bank of Syria should impose a “geographic emergency plan” and designate Hasakah and similar governorates, including Deir Ezzor, as “mandatory extension areas” because of the limited replacement of old currency. These governorates should receive an additional period of at least 90 days, he said.
Faqih said resolving the shortage of new cash in these governorates requires:
- Immediately directing shipments of new banknotes to bank branches in these governorates.
- Establishing temporary exchange centers at major institutions and opening exchange windows at universities, ministries, and consumer complexes.
- Raising daily deposit limits for individuals and companies and allowing large amounts of old currency to be deposited without the usual bureaucratic scrutiny.
- Providing merchants with official bank receipts for the value of their old banknotes so they can continue operating until they receive the new currency.
- Settling tax balances in the old currency by allowing companies and shops to pay taxes and fees with old banknotes as a channel for removing them from circulation.
- Requiring wholesale companies, mills, and fuel companies to accept the old currency, encouraging small shops to do the same.
The governor of the Central Bank of Syria recently announced during a public-private sector roundtable in Damascus that approximately 80% of the old Syrian currency had been replaced since the beginning of the year.
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