During the Ottoman Occupation

Until World War I, Syria was under Ottoman rule, and its currency was the Ottoman currency. Initially based on the bimetallic standard, it transitioned to the gold standard in 1888, where a monetary reform was carried out. The Ottoman golden lira became the primary monetary unit in the country, valued at four gold dollars and forty cents, divided into one hundred gold piasters. It weighed 7 grams and 166 milligrams, with a caliber of 0.9165. Alongside this primary monetary unit, auxiliary currencies made of cheaper metals such as silver and copper were also in circulation, primarily for small payments. Larger transactions were conducted using Ottoman gold lira, with English and French gold lira also utilized, albeit to a lesser extent. 

As for Turkish paper money, its circulation was quite limited. The authority to issue paper currency was granted to the Imperial Ottoman Bank, established as a French-English venture in 1862. The bank issued notes backed by gold reserves at a rate of approximately 200%, ensuring their redeemability in gold. However, their usage remained modest due to the prevailing preference for gold transactions among the populace. 

During World War I, Turkey suspended the use of gold for transactions, ceased the redemption of Turkish paper currency in gold, and mandated the use of paper money. When the Ottoman Bank declined to lend to the Turkish government for financing the war against France and England, the government issued seven successive issues of currency between 1915 and 1918. The initial issue was partially backed by gold reserves, while the subsequent issues were backed by bonds from the German and Austrian treasuries.

 

Issuance of currency not adequately backed by reserves contributed to the depreciation of the purchasing power of Turkish paper money, resulting in an 80% loss of its value. This led individuals to avoid using paper currency and instead hoard gold. The quantity of gold increased significantly in the provinces of the empire due to the Turkish government's practice of paying for supplies purchased from the provinces in gold.

 

After the entry of Allied forces into Syria in 1918, Turkish paper currency was discontinued, and the Egyptian pound was mandated as the primary circulating currency. Concurrently, various gold coins from different origins, as well as Turkish, English, Indian, and Egyptian silver coins, continued to circulate.