Syria’s Supreme Fatwa Council issued a clarification on the Islamic ruling governing the sale or exchange of Syrian currency being withdrawn from circulation.

In a statement issued on Thursday, July 30, the council said Islamic law does not permit currency to be sold or exchanged for more or less than its face value as long as it can still be exchanged through banks or the Central Bank of Syria.

The council said such transactions are prohibited because the banknotes are still considered money, and exchanging them in this manner constitutes usury.

It added that the statement came in response to a question about the Islamic ruling on selling or exchanging currency above or below its face value.

During field visits by its correspondents on Tuesday and Wednesday, July 28 and 29, Enab Baladi observed the emergence of a parallel cash exchange market in Damascus, Rural Damascus, Aleppo, Latakia and Tartus on Syria’s western coast, al-Hasakah and Deir Ezzor in eastern Syria, Hama in central Syria, and Daraa in southern Syria.

Traders charged varying commissions, taking advantage of a shortage of small-denomination banknotes from the new currency.

Enab Baladi’s correspondent in Deir Ezzor reported that some merchants had begun accepting the old currency after deducting as much as 10% of its value.

According to a survey conducted by Enab Baladi’s correspondent in Latakia, some supermarkets had become unofficial currency exchange points, deducting about 10,000 Syrian pounds for every one million pounds exchanged.

Some unofficial exchange offices also began providing currency exchange services, charging about 50,000 old Syrian pounds for every one million pounds exchanged, equivalent to a 5% commission.

Commercial Bank of Syria and Real Estate Bank Extend Hours

As the old Syrian currency entered its final day of circulation in markets, the Commercial Bank of Syria and the Real Estate Bank of Syria announced that their official working hours would be extended until 8 p.m. on Thursday.

The banks said the extension followed a circular from the Central Bank of Syria and was intended to facilitate the completion of the national currency exchange process and reduce crowding.

The Commercial Bank of Syria said in a statement that the additional working hours would apply to all its branches and would be dedicated exclusively to exchanging Syrian currency in accordance with the established regulations.

The Real Estate Bank of Syria said its branches would remain open until 8 p.m. in Damascus, at the al-Salihiya branch, Aleppo, at the Bab Jnein branch, Latakia, at the al-Kamiliya branch, Tartus, at the main branch, as well as at the bank’s branches in Hama and Homs.

It added that the extended working hours would be dedicated to exchanging the old currency.

 July 30 Marks End of Old Currency’s Legal Tender Status

The Central Bank of Syria previously announced that the old Syrian currency would lose its legal tender status once the exchange deadline expired on July 30.

On July 26, the central bank ended speculation over whether the legal tender period would be extended, reiterating that the old currency would lose its status and become invalid for circulation beginning July 31.

The bank urged citizens to exchange any old banknotes in their possession through its centers and approved bank branches before the deadline.

It stressed that the banknotes would no longer be valid for making payments or settling financial obligations after the exchange period ended.