By Norman al-Abbas
DAMASCUS, Syria (North Press) – The streets of Damascus are grappling with a surge in counterfeit currency and unregulated money exchange following the fall of Bashar al-Assad’s regime, highlighting the lack of oversight and the challenges of transitioning to economic stability.
Ahd Zaalan, a young man from the city of Qamishli, northeastern Syria, did not know he would fall victim to the counterfeiting operations that have flooded the streets of Damascus.
Syrians were freed from the restrictions on trading in U.S. dollars, which had been prohibited under the rule of the former regime.
Lack of regulation
Zaalan shares that he was scammed when he exchanged 650,000 Syrian pounds in his possession for $50 in counterfeit bills from an anonymous street money exchanger.
Meanwhile, Mazen al-Zein, a resident of the capital, expresses concern over the chaos overtaking the streets, where street exchangers have now “spread as far as the eye can see.”
Dealing in foreign currency has become a prominent feature of Damascus’ streets, reshaping the city’s character and redefining its economic reality. However, challenges have emerged due to the absence of oversight and regulation.
Ramez Arabsha, a street money exchanger in Damascus, says that counterfeiting has reached alarming levels, with $100 bills topping the list of most counterfeited currencies.
He points out that highly sophisticated counterfeit bills have emerged, nearly identical to genuine currency. Yet, the new Syrian authorities have neither commented on the issue nor taken steps to address it so far.
The primary difficulty lies in the fact that these counterfeit bills closely mimic the originals in texture, watermark, and three-dimensional security threads. The differences are so subtle that distinguishing them requires holding the bill up to light to inspect details like the character within the white circle or the hidden security strip.
Chaos
Yasser Mashal, a former member of the Monetary and Credit Council, explaines that in any transitional period—especially in the absence of oversight, regulation, and security agencies—crime and disorder naturally increase.
He notes that counterfeit dollars are rampant in countries with security imbalances, such as Syria, Iraq, and Libya.
Speaking to North Press, Mashal adds that the only solution to combat counterfeit dollars is the reactivation of banking operations, particularly for foreign currency exchange.
He emphasizes that currency exchange must take place through official institutions rather than through unlicensed street exchangers or companies, as banks possess the equipment to detect counterfeit bills.
Mashal also distinguishes between “counterfeit dollars” and “frozen dollars,” explaining that counterfeit bills are not issued by the United States and are printed elsewhere. In contrast, frozen dollars are genuine U.S. dollars that were used in illicit activities and subsequently frozen by the U.S. Treasury.
He highlights that certain serial numbers on frozen dollars have been globally decommissioned and removed from circulation.
Mashal explains that detecting frozen dollars is far more challenging than identifying counterfeit bills, as frozen dollars are genuine currency. The difficulty is compounded by the absence of global financial connections and regulatory systems in Syria due to sanctions.
The former council member notes that frozen dollars are sold in the market and on social media platforms at prices below the official dollar rate.
He stresses the importance of the Central Bank making immediate decisions to ban dollar trading on the streets and to activate official channels for currency exchange, such as banks, using verified and regulated processes.