The Autonomous Administration of North and East Syria has recently made significant announcements regarding currency transactions. This article delves into the details of these policies and their implications. Unraveling the Currency Restrictions in Autonomous Syria
Allowed Dollar Trading for Business
The Autonomous Administration of North and East Syria (AANES) has clearly stated that trading in dollars for business purposes is permitted. Even at the grassroots level of grocery stores and small buying and selling operations, this option is available. Shop owners have the right to sell goods in US dollars and return the remaining amount in either dollars or Syrian pounds. This shows the flexibility provided in certain business transactions while maintaining a certain level of control over the currency. It gives local businesses a certain degree of autonomy in their financial dealings and helps in facilitating trade within the region.However, it is important to note that currency exchange and transfers are strictly prohibited without obtaining the necessary licenses. This ensures that the financial system remains regulated and stable. The co-chair of the Anti-Money Laundering and Terrorism Financing Directorate at the Central Monetary and Payment Office, Khalil al-Dhiab, emphasized this point on Tuesday, November 19. He made it clear that while businesses can engage in dollar transactions, they must not violate the laws regarding currency exchange and transfer.Prohibition of Unlicensed Currency Activities
AANES prohibits the practice of currency exchange and financial transfers without obtaining a license from the Central Monetary and Payment Office. This is a crucial measure aimed at maintaining the financial system in northeastern Syria. According to a previous circular issued with the number “70”, this prohibition is in line with the directives set by the administration. The prohibition is part of a larger effort to ensure the stability and integrity of the local currency.Al-Dhiab clarified that violating these regulations will lead to legal consequences. Those found engaging in currency exchange and financial transfers without a license will be referred to the public prosecution. This serves as a deterrent and emphasizes the seriousness with which the administration views these matters.AANES also periodically reminds of its decision issued at the beginning of this year. Yesterday, Monday, it published a circular stating the prohibition of work in the currency transfer and exchange sectors in its controlled areas without obtaining the necessary licenses. This circular is an extension of a previous one issued in August 2023, which granted a grace period for currency exchange and financial transfer offices to obtain a license allowing them to operate. The administration has been proactive in ensuring that these regulations are adhered to and has taken steps to enforce them.Previously Issued Laws and Restrictions
In August, AANES issued the Precious Metals Law, which prohibited the trade or manufacture of precious metals and gemstones without obtaining a license from the Precious Metals Directorate at the Central Monetary and Payment Office. The office will later issue instructions specifying the terms and conditions for the license. This law further emphasizes the administration's commitment to regulating and controlling various aspects of the economy. The license needs to be renewed annually before the end of each year, as per the instructions to be issued by the Monetary and Payment Office.In September, the Autonomous Administration restricted the movement of money to and from its controlled areas. The decision to prevent the transfer of money to and from these areas, which was issued about a year ago, aims to maintain monetary stability. Khalil al-Dhiab, the head of the Anti-Money Laundering and Terrorism Financing Office, stated that these instructions related to the transfer of money across borders were issued to preserve the monetary stability of the local currency. This shows the administration's focus on safeguarding the financial well-being of the region.Overall, these currency policies implemented by the Autonomous Administration of North and East Syria play a crucial role in maintaining the stability and integrity of the local economy. By regulating currency transactions and imposing restrictions on unlicensed activities, the administration is taking steps to ensure a sustainable financial future for the region.
