In Syria, 2 Currencies and No Stability
The adoption of the Turkish lira in opposition areas reflects both necessity and the erosion of national control
Since Syria’s uprising began in 2011, the Syrian pound has lost nearly all of its value. What was once a relatively stable currency—trading at around 50 pounds to the US dollar—has plummeted to more than 15,000 to the dollar. Years of war, economic collapse, and sweeping international sanctions have devastated the economy, and the financial system has fractured. In parts of northwestern Syria, including Idlib and northern Aleppo, residents have increasingly turned to the Turkish lira as an alternative to the failing Syrian pound.
The pound’s decline has unfolded in several distinct phases. From 2011 to 2013, as the civil war intensified, the currency fell sharply past 200 pounds to the dollar. Between 2014 and 2016, the collapse deepened amid falling domestic production and exports, pushing the rate beyond 500. A brief period of stabilization followed from 2017 to 2019 as the Syrian government regained control over major cities, and the exchange rate hovered between 500 and 1,000. But that stability unraveled in 2020, when the US enacted the Caesar Syria Civilian Protection Act, a sanctions package aimed at the Assad regime and its financial backers.
The Caesar Act restricted foreign investment, blocked reconstruction aid, and targeted the government’s ability to move money internationally. Foreign currency inflows dried up, and confidence in the Syrian economy deteriorated even further. The pound plunged to over 4,000 to the dollar, and by 2024 it had fallen past 15,000. Government efforts to impose currency controls, regulate exchange rates, and crack down on dollar transactions failed to stem the collapse.
The Syrian pound lost a significant portion of its value rapidly, leading to unprecedented price hikes, while the Turkish lira offers relative stability
Faced with this volatility, many in northern Syria began using the Turkish lira for daily transactions. “The Syrian pound lost a significant portion of its value rapidly, leading to unprecedented price hikes, while the Turkish lira offers relative stability,” said Anas Hammoud, a currency exchange worker in Idlib. He told The Media Line that because most goods entering the area come from Turkey, adopting the lira was both a practical and economic decision.
Integrating the Turkish lira helped cushion residents from the worst effects of hyperinflation. Incomes held their value better, and people could price goods more predictably. Local financial institutions began facilitating lira transactions, helping it circulate more easily throughout the local economy.
But the shift brought new complications. Hassan Al-Qasim, a Syrian businessman involved in cross-border trade, spoke to The Media Line about the difficulties. “Although the Turkish lira is more stable than the Syrian pound, it is still subject to economic fluctuations within Turkey,” he said. One of the practical obstacles is the shortage of small-denomination coins and banknotes, which makes even basic transactions cumbersome.
This holiday season, give to:
Truth and understanding
The Media Line's intrepid correspondents are in Israel, Gaza, Lebanon, Syria and Pakistan providing first-person reporting.
They all said they cover it.
We see it.
We report with just one agenda: the truth.
Although the Turkish lira is more stable than the Syrian pound, it is still subject to economic fluctuations within Turkey
The dual-currency system has also weakened Syria’s monetary sovereignty in the region. With the Turkish lira dominating commerce in the north and the Syrian pound still used in other parts of the country, the central government’s ability to influence or stabilize the broader economy is limited. Merchants struggle to set consistent prices, as goods may be priced in one currency but sold in another. That’s led to disparities in costs depending on which currency is being used. For example, the same item may cost more in pounds than in lira—or vice versa—depending on informal exchange rates set by traders.
Workers paid in different currencies often experience wage discrepancies. Some salaries are issued in Syrian pounds, others in lira, and the difference in value is not always adjusted to match inflation or currency fluctuations. This has led to social tensions and deepened economic uncertainty. Meanwhile, the region’s growing reliance on the Turkish economy makes it vulnerable to financial instability across the border.
The consequences of this system are being felt across all levels of daily life. Inflation continues to erode purchasing power. The disparity in pricing between goods valued in Syrian pounds and Turkish lira has caused purchasing power fluctuations and worsened economic instability. Salaries in the public and private sectors no longer stretch as far, and wage earners often find themselves unable to afford the basics.
The dual-currency setup has also driven a loss of trust in the formal banking system. Strict withdrawal and transfer regulations have made it difficult for people to access their money, pushing many to operate outside the official financial channels. Currency smuggling and illicit trading between the Syrian pound and Turkish lira have become widespread, creating black markets that distort prices and undermine local businesses. Workers who receive their income in the less stable currency—usually the Syrian pound—are especially vulnerable, as they watch their wages lose value almost immediately.
Restoring the Syrian pound’s value necessitates economic restructuring, boosting local production, and better management of foreign reserves
Economist Osama Al-Hassan said the Syrian pound cannot recover without a combination of monetary reform and political stability. “Restoring the Syrian pound’s value necessitates economic restructuring, boosting local production, and better management of foreign reserves,” he told The Media Line.
He believes that encouraging foreign remittances is critical for stabilizing foreign currency reserves. He also recommended regulating the exchange market, issuing smaller-denomination banknotes, and adjusting wages to better match inflation. Al-Hassan emphasized that restoring confidence in the pound will require the government to offer financial incentives to businesses that continue using the national currency.
At the same time, he cautioned against clamping down too hard on the use of the Turkish lira. “Implementing balanced policies on the use of the Turkish lira in northern Syria” is necessary, he said, “without imposing overly restrictive measures that could harm businesses.”
Syria’s dual-currency reality reflects the deeper fragmentation of the country itself. The use of the Turkish lira may provide short-term relief for some, but it points to the breakdown of state control and the lack of a coherent national economic policy. With no end in sight to the war or the sanctions regime, and with the pound continuing to decline, the financial future of millions of Syrians remains as uncertain as ever.
