Forgotten Ottoman Empire


After four years under an intergovernmental agreement Banque de Syrie got exclusive right to issue currency in Syria and Greater Lebanon for 15 years. Although the bill for Syria and Lebanon were differences, they were free to go to both countries. France recorded the amount of money supply at 25 million pounds. Banknotes in circulation should be 100% covered:

- Gold coins, gold bullion, or obligations of foreign governments, redeemable in gold;

- Portfolio of commercial paper in the Lebanese-Syrian pounds;

- Mandatory deposit in the treasury of France.

Thus, Syria has moved from one point to the bimetallic system-franc gold standard.

In the hands of the British Crown

In the hands of the British Crown were much larger areas: Palestine, Iraq and the Arabian Peninsula. The Palestinian government in an effort to find additional revenues, decided to organize their own the monetary authorities. In February 1927, it was formed by the Palestinian Monetary Board (Palestine Currency Board), which began its work after nine months.


The initial money supply currency board totaled 190 thousand Palestinian pounds. Withdrawn from circulation Egyptian pounds were brought to the National Bank of Egypt, and in return received sterling form a reserve currency board Palestine. Newly-born Palestinian pound was equivalent to one pound sterling.

Monetary policy of the Palestinian government was of innovative. About 84% of the assets of the monetary authorities were invested in investment instruments. The Board could not afford it illegal for other British colonies, "liberty", because Palestine is continuous Jewish settlers arrived and brought with them their savings. As a result, the Palestinian economy had a steady flow of capital, and the monetary authorities can not take care of replenishing reserves.

Monetary assets consisted mainly of government securities of imperial and local governments, as well as debt Dominions - Australia, New Zealand, India and the British colonies in Africa. Investments yield annual revenue of 1/8 percent, or seigniorage Palestinian Monetary Board. Partition of Palestine into Jordan and Israel in 1946 led to the reorganization of the monetary authorities. Monetary Board to continue to conduct its operations in Jordan until 1950, and in Israel monopoly of issuing money was provided by a commercial bank Anglo-Palestine Bank (today it is known as Bank Leumi le-Israel).

In 1915-1916. Anglo-Palestine Bank issued the so-called "Registered checks," which fill the shortage of money during the war. On the black market were estimated at 80-90% of face value, which was higher than the rate of banknotes Banque Ottomane Imperiale. Vicar of Palestine was suspicious of the bank, as its founders were English, which was a war. And the governor ordered the bank to liquidate, and his pay checks. However, British troops captured Palestine, before the order was made.

In Gaza, the Palestinian Monetary Board notes continued to turn until 1951, when they were replaced by Egyptian money.