2½ Piastres – Syria

In 1940, Syria's currency situation was directly shaped by its political status as a French mandate under the control of the Vichy French administration following France's defeat by Nazi Germany. The official currency remained the Syrian pound (or livre syrienne), which was issued by a French-controlled private bank, the Banque de Syrie et du Grand-Liban. This currency was nominally pegged to the French franc, but this link became increasingly strained and theoretical as the war progressed, leading to significant instability.

The outbreak of World War II and the subsequent division of France created major economic disruptions. The Vichy authorities in Syria, cut off from Metropolitan France and under a British naval blockade, faced severe shortages of goods and inflationary pressures. To finance their administration and military expenditures, the Vichy regime resorted to printing currency, which led to a rapid devaluation of the Syrian pound in real terms. This period saw the emergence of a growing black market for both goods and foreign currencies, as confidence in the mandated currency eroded.

Furthermore, the geopolitical struggle for influence in the region directly impacted the monetary landscape. British and Free French forces, anticipating the eventual Allied invasion to oust the Vichy authorities (which occurred in 1941—the Syria–Lebanon campaign), began planning for a post-Vichy financial order. This set the stage for a significant currency reform in 1941, where the Syrian pound would be repegged from the French franc to the British pound sterling, marking a decisive shift in the region's economic alignment away from Vichy France and toward the Allied powers.