Money in Syria
Syria’s modern history has been marked by political shifts, conflict, and economic challenges.
Syria’s modern history has been marked by political shifts, conflict, and economic challenges. After World War I, France acquired a mandate over the northern part of the former Ottoman Empire province of Syria. It administered the region as Syria until its independence in 1946. However, the country faced political instability and witnessed a series of military coups.
In 1958, Syria united with Egypt to form the United Arab Republic, but the union dissolved in 1961, leading to the reestablishment of the Syrian Arab Republic. In the 1967 Arab-Israeli War, Syria lost the Golan Heights region to Israel. Despite occasional peace talks with Israel during the 1990s, the Golan Heights have remained under Israeli control.
In 1970, Hafiz al-ASAD, a member of the Ba’ath Party and the Alawi sect, seized power in a bloodless coup, bringing stability to the country. After Hafiz al-Asad’s death, his son Bashar al-ASAD succeeded him as president through a popular referendum in 2000. Syrian troops, which had been stationed in Lebanon since 1976, were withdrawn in 2005.
In 2011, influenced by uprisings in other parts of the region, antigovernment protests erupted in Syria, initially in the southern province of Dar’a. The protesters demanded political reforms, the repeal of the Emergency Law, the legalization of political parties, and an end to corruption. The government responded with a mix of concessions and military force, leading to a civil war between government forces, opposition groups, and later, extremist organizations.
International pressure mounted on the Asad regime, with sanctions imposed by the Arab League, the European Union, Turkey, and the United States. In December 2012, the Syrian National Coalition was recognized by numerous countries as the legitimate representative of the Syrian people. In 2015, Russia intervened militarily in support of the Asad regime, which helped it regain significant territory from opposition forces, including the city of Aleppo in 2016.
The conflict has resulted in a complex situation, with various actors controlling different parts of the country. The Syrian Democratic Forces (SDF), dominated by Kurdish elements, control much of the northeastern region, while Turkey and its opposition allies hold territories in the northwestern part of the country. The extremist organization Hay’at Tahrir al-Sham (formerly known as the Nusrah Front) is a prominent opposition force in Idlib Province.
Efforts to resolve the conflict through negotiations at UN-sponsored Geneva conferences and separate discussions involving Iran, Russia, and Turkey have so far been unsuccessful. The death toll resulting from the civil war is estimated to be over 350,000, and millions of Syrians have been displaced internally or have become refugees in neighboring countries.
Syria’s economy has been severely affected by the conflict, with infrastructure and industries devastated. Ongoing US sanctions and hyperinflation have further hampered economic recovery. In 2020, the economy contracted by an estimated -3.87%. Prior to the conflict, Syria had a low-income economy, with a GDP of $50.28 billion in 2015. The country continues to rely on humanitarian assistance and support from international organizations such as the World Bank to address its pressing needs.