Republic President,
Pursuant to the constitution provisions,
what has been approved by People's Assembly in its session of 27/9/1422 H corresponding to 12 December 2001, promulgates the following:

1. The Credit and Monetary Council shall undertake the task of organizing the credit and monetary institutions in the Syrian Arab Republic and coordinating their activities to fulfill the below stated objectives within the limits of its prerogatives and within the state public economic inclinations decided by the cabinet:

1. Development of the monetary and financial market and the organization thereof according to the national economy needs.

2. Maintain the purchasing power of the Syrian currency.

3. Realize stability of the foreign exchange rate of the Syrian currency and secure free exchange thereof to other currencies.

4. Expand possibility of utilizing resources and potentials and work towards the development of national income.

2. For this purpose, Credit and Monetary Council shall undertake:

1. Establish the monetary policy in the Syrian Arab Republic and manage it pursuant to the state general strategy and national economy needs inclusive these policies related to price stability, purchasing power of the national currency, and policies of credit, interest, banking saving and exchange rates.

2. Exercise the Credit and Monetary Council prerogatives stipulated in chapter three of this law.

3. Follow up on the banking apparatus, discuss all issues relevant to banking work, activities of relevance and take appropriate decisions through the Central Bank of Syria.

4. Organize transactions of payment and settlement inclusive current transactions by means of electronic tools.

5. Supervise banking profession and direct its activities according to the provisions of chapter four of this law via the Central Bank of Syria.

6. Conduct necessary surveys and studies related to its tasks or commissioned thereto by the executive authority.

7. Undertake the task of the state financial consultant and submit in this capacity, the opinions it deems appropriate about the affairs related to its prerogatives. The government shall consult it regarding the measures and matters related to the financial, monetary and banking situation of the S.A.R.

8. Expand all prerogatives and tasks defined thereto in the laws and regulations in force.

1. Credit and Monetary Council shall comprise:
   

   1. Governor of the Central Bank of Syria 2. First deputy of the Central Bank of Syria Governor 3. Second deputy of the Central Bank of Syria Governor 4. Assistant Minister of Economy and Foreign Trade 5. Assistant Finance Minister 6. Assistant Minister of Agriculture and Agrarian Reform 7. Assistant Industry Minister 8. Head of State Planning Authority 9. Three experts in monetary, credit and banking affairs

   President Vice President. Member Member Member Member Member Member Members

2. Governor of the Central Bank of Syria and his two deputies are definitely considered members of the Council. Other members shall be named by a decree upon the proposal of their ministries and bodies they represent. Upon the selection of experts, it must be observed that they are renowned in science, practical experience and technical expertise.

3. Council president and members shall carry out the tasks assigned thereto with complete objectivity and neutrality.

4. It shall not be the right of the expert members of the Credit and Monetary Council to be members in the board of any commercial company or a company of a commercial nature except for the international financial institutions or the local financial institutions under the state management. They shall also have no right to be responsible in any capacity whatsoever for the management of private establishment of a commercial nature.

5. Remunerations of the council president, his two deputies and other members shall be defined by a decree upon the proposal of the Minister of Economy and Foreign Trade without adherence to the controls and maximum limits stipulated in the laws in force.

The council shall have the right to seek the assistance of experts, call to its meetings, in consultation and for a certain purpose, all persons deemed to be beneficial for the performance of its tasks. Remunerations of said persons shall be defined by the council and they shall be issued by a decree upon the proposal of the Minister of Economy & Foreign Trade.

Discussions and decisions of the council are definitely considered confidential.

Central Bank of Syria shall act as the secretary of the Council.

Secretary of the Central Bank of Syria shall carry out the tasks of the Credit and Monetary Council's Secretary and he shall report decisions of this Council to the concerned bodies.

1. The council shall enjoy, within the limits drawn thereto by this law, the widest prerogatives in performing its tasks.

2. Public departments and bodies and public and private financing, credit and exchange institutions shall have to provide the Council through the Central Bank of Syria with all information requested thereby as it deems necessary to perform its tasks.

3. The Council shall set its policy.

1. The Council shall convene once a month at least upon the call of its president or three members at least.

2. Meetings of the Council shall not be considered legal unless attended by absolute majority of its members. Decisions shall be taken by majority of attending members unless stipulated otherwise by this law. In case of equal vote, the president shall have the casting vote.

3. Decisions taken by the Credit and Monetary Council shall be notified to the Minister of Economy & Foreign Trade and the Minister shall have the right to suspend the implementation of any decisions he deems contrary to the interest of the state for a maximum period of seven days during which the decision shall be reviewed once again by the Council. In case the difference of viewpoints continues to exist, the Minister of Economy & Foreign Trade must urgently present the subject to the cabinet to take its decision thereon soonest possible.

1. 1. In addition to the other duties imposed by this law, it shall be prohibited for the members of the Credit and Monetary Council to disclose any of the information they know be virtue of their tasks unless they are summoned for witness before the jury.2. This prohibition shall be applicable for the persons and staff whose assistance is sought by the council in the course of performing its task in any way whatsoever.3. It shall be prohibited for the experts who are members of the Credit and Monetary Council, during their membership in the Council and two years after its expiry, to assume the chairmanship or membership of any of the banks or the financial institutions under the Council supervision or to accept any work therewith whatever its type is.4. Violator to the provision of this article shall be subject to legal accountability and the punishment stipulated in the laws in force shall be applied to him.

1. The Credit and Monetary Council shall submit the information requested therefrom by the Minister of Economy & Foreign Trade. It shall also submit a quarterly report (every three months) on the execution of its task, the monetary and financial situation in the Syrian Arab Republic. Moreover the Council may submit reports to the Minister upon need. The regular report must show an overall situation of various aspects particularly:
   A- Credit operations to all economic sectors.
   B- Credit operations to the public departments and institutions.
   C- Status of the monetary coverage.
   D- Development of exchange markets situation.

2. Gives proposals on the current situations and needs of national economy.

3. Except for scientific studies, the Council shall not have the right to publish any thing except for what is sanctioned by the law or what is approved by the Minister of Economy & Foreign Trade. It is also forbidden for the Council, except for its president, to give any speech related to the work of the Council on its discussions.

Central Bank of Syria shall bear all expenses of the Council. It shall also bear all remunerations of its members and consultant experts whose assistance is sought pursuant to provisions of article 3 of this law.

1. Without prejudice to the provisions of International Monetary Fund Agreement and its amendments and the international and Arab monetary agreements that the state concludes or joins, the exchange system and external exchange rate of the Syrian pound shall be determined by a decision issued by the cabinet upon the proposal of the Credit and Monetary Council and Ministry of Economy & Foreign Trade.

2. Exchange rates of transferable foreign currencies shall be determined on basis of their exchange rates prevailing in the international markets. However, exchange rates of non-transferable currencies shall be determined by a decision of the Credit and Monetary Council.

1. Issue of money papers, official gold and silver species and monetary coins is a prerogative confined in the state and the Central Bank of Syria shall exercise this prerogative pursuant to the provisions of this law.

2. Central Bank of Syria shall be exempted from all taxes, fees and financial impositions of any type whatsoever regarding the import of the items stated in para/1/ of this article and the contracts of these items as well as all machines, tools and sets used for their counting, sorting and testing and the costs arising from their storing, transporting and preserving and all sets related to their payment and circulation.

3. Whoever violates or tries to violate said prerogative shall be subject to the punishments stipulated in the laws in force.

1. Money papers under this law are those papers to the order of bearer issued in Syrian pounds by the Central Bank of Syria in implementation to the provisions of this law.

2. The papers shall have the legal circulation capacity and unlimited absolving power for the payment of all public and private debts.

1. It is possible to issue money paper of the following categories: one pound, two pounds, five pounds, ten pounds, twenty-five pounds, fifty pounds, a hundred pounds, two hundred pounds, five hundred pounds and one thousand pounds.

2. Money papers shall bear the signatures of the Minister of Economy & Foreign Trade and the Governor of the Central Bank of Syria.

1. Dimensions, pictures, colors and all descriptions of money papers shall be specified by a decision from the Minister of Economy & Foreign Trade upon the proposal of the Central Bank of Syria.

2. Money papers shall be put in circulation by a decision from the Minister of Economy and Foreign Trade upon a proposal from the management committee of the Central Bank of Syria.

1. Central Bank of Syria shall withdraw from circulation those money papers that no longer meet the technical conditions that make them fit for circulation.

2. Incomplete or deformed money papers may be exchanged if they meet the following three conditions at one time.
   A- Area of the paper meant for replacement is more than three fifths of the original one.
   B- The paper must bear the two signatures imposed in article 16 in full.
   C- The paper must bear one of the serial numbers in full.Except for the above-mentioned conditions, the incomplete or deformed papers are withdrawn without any payment to the bearer unless it is proven to the Central Bank of Syria that deformity has been caused as a result of force majeure.

3. Central Bank of Syria shall not be held responsible in any form whatsoever for the loss of any quantity of money paper circulated among the public ,banks, public funds or the theft thereof.

1. Withdrawal of one category or more of the money papers or the exchange thereof shall be effected by a decree upon a recommendation of the Credit of the Monetary Council and proposal of the Minister of Economy & Foreign Trade.

2. This decree shall define the exchange period that can never be less than three months unless there is a need for expediting the withdrawal, then it is possible to shorten this period provided that it is not less than seven days.

3. Withdrawal decree shall be announced to the public through all appropriate means.

1. Money papers that are not submitted for changing prior to the expiry of the defined period shall lose their dissolving power and shall be dropped from circulation. The Central Bank of Syria, in its headquarter in Damascus, shall, within five years as of the start of the withdrawal process, pay the value of papers submitted for changing without receiving any expense.

2. With the end of the five-year period, provisions of prescription shall be applicable to the papers that are not submitted for changing and their value is up to the Central Bank.

1. It is impermissible to issue any monetary piece unless it has an equivalent increase thereto in the following assets of the Central Bank of Syria:
   A- Gold.
   B- Claims in the transferable foreign currencies.
   C- Claims in the Syrian pounds generated from credit operations to all economic sectors.
   D- Public bonds of short, medium or long term issued or guaranteed by the state as well as credits and loans similar to those bonds.

2. Ratio of gold and transferable foreign currencies placed for coverage must be at least 40% (forty percent) of the total coverage components.

3. In application of the provisions of this part, total obligations of the Central Bank of Syria on demand are considered similar to issued money papers.

1. It is impermissible to accept in the gold coverage except the assets that consist of monetized gold or gold moulds.

2. The cabinet, upon the proposal of the Minister of Economy & Foreign Trade, shall define the places where gold under coverage must be put.

1. Central Bank of Syria shall record the golden assets placed under coverage at the cost price or market price whichever is less.

2. Purchase prices shall be defined on basis of the internationally posted price.

3. Credit and Monetary Council shall define the selling prices of gold assets according to the internationally posted price taking into consideration molding costs and allowances of the historical value of moulds.

1. It is impermissible to accept in the coverage of foreign currencies except the following assets:
   A- Transferable foreign money papers.
   B- Assets in transferable foreign currencies registered at the international, and governmental institutions and foreign banks in an account under demand or for a term that does not exceed one month.
   C- Bank deposit certificates in transferable foreign currencies for terms that does not exceed one year.
   D- Commercial bonds to the order of somebody edited in transferable foreign currencies withdrawn from Syria to abroad whose maturity does not exceed 120 days guaranteed by three signatures of solvency of which one is a banking signature.
   E- All liability bonds on demand edited in transferable foreign currencies due abroad used in general in international money transfers.
   F- Bonds of medium or short terms issued by international countries or Arab or international official financial institutions or guaranteed by those countries or bodies. This shall be by the approval of the Credit and Monetary Council provided that these bonds enjoy high international credit evaluation of excellent degree.

2. Credit and Monetary Council shall specify the transferable foreign currencies that may be accepted in coverage. It shall also specify the degree of credit evaluation of the papers allowed to be accepted in the coverage and specify ,upon need, the maximum amounts for each type of them.

3. Assets in transferable foreign currencies placed under coverage shall be registered in a special field.

1. The Central Bank of Syria shall register the transferable foreign currencies placed under coverage at their exchange prices defined pursuant to provisions of article 13 of this law on purchase date.

2. It is impermissible that selling and purchasing prices of transferable foreign currencies against the Syrian pounds differ from posted exchange rate except within the limits specified by the Credit and Monetary Council.

Profits and losses resulting from the amendments effected on the posted exchange rate of transferable foreign currencies placed under coverage or due to any force majeure shall revert to the state.

1. It is impermissible to accept in the coverage of Credit transactions for all economic sectors except the following assets:
   First: Promissory notes and all other commercial bonds edited to the order of somebody in Syrian pounds.
   Second: loans and advance payments in Syrian pounds that get mature by a specific period against the mortgage of the following:
   A- Minted gold or golden moulds.
   B- Public bonds for short, medium or long terms issued or guaranteed by the state and all public bonds accepted by the Credit and Monetary Council and approved by Minister of Economy & Foreign Trade.
   C- Promissory notes and commercial bonds.D- All in kind values acceptable to the Credit and Monetary Council particularly the receipts issued by public stores and goods.

2. Term of promissory notes and commercial bonds maturity subject of discussion in para1 of first item must not exceed 120 days at most as of date of submission. It is also impermissible that period of advance payments and loans subject of discussion in para1, second item exceed 120 days. It is possible, by a decision from the Credit & Monetary Council, to extend the term of promissory notes, commercial bonds and period of loans and advance payments to 200 days if they were related to industrial or agricultural credits or to the export of industrial or agricultural Syrian products abroad.

1. Promissory notes and commercial bonds stipulated in item first, para1, article 27 must initially bear three signatures of solvency.

2. It is permissible to replace two signatures by one signature guaranteed by the state.

3. It is possible that one mortgage stipulated in para1, item second, A, B, C, D of article 27 replaces one signature or two signatures according to the terms and conditions determined by the Credit& Monetary Council in policy attested by The Minister of Economy& Foreign Trade.

1. Loans and credits referred to in article 27 must be guaranteed by a solvent signature whether it is an original or additional one.

2. Credit and Monetary Council shall determine the cases in which the mortgage stated in article 27 can be exceptionally replaced by two solvent signatures.

Credit & Monetary Council shall seta policy to be attested by the Minister of Economy& Foreign Trade indicating the following:

1. Basics that must be observed to accept promissory notes, commercial bonds, credits and notes subject of discussion in articles 27, 28 and 29 in the monetary coverage.

2. Types of goods and items that can be mortgaged and the ratio that must be dropped from their sale value.

3. Public bonds that may be mortgaged and the ratio that must be dropped from their national or sale value.

4. The price of accepting gold upon mortgage.

The Central Bank of Syria shall register the commercial bonds referred to in article 27 according to their nominal value.

Without prejudice to the provisions of article 27 and the articles thereafter, law No. 177 for 1958 relevant to the Industrial Bank, Legislative decree No. 29 for 1966 and its amendments in Law No. 11 for 1975 relevant to the Real Estate Bank, legislative decree No. 141 for 1970 amended by law No. 27 for 1990 relevant to Cooperative Agricultural Bank, it is possible to place the loans and credits granted to governmental credit institutions in the coverage within the limits and terms defined by the Credit and Monetary Council on condition that:

1. Ratio of loans of more than one year term must not exceed a specified percentage of the total loans and credits approved by the Central Bank to be granted to any bank provided that this percentage is specified for each bank by the Credit and Monetary Council pursuant to the nature of the financed activity.

2. Against those loans and credits, the aforementioned institutions must mortgage their claims that accrue from these loans and credits within their terms and that Central Bank of Syria must replace these institutions in all rights relevant to these claims.

3. Nominal value of the mortgaged claims must be more than loans or credit by one third at least.

4. Said claims must be documented by a real estate mortgage or any other in kind guarantee acceptable by the Credit and Monetary Council.

Credit and Monetary Council shall determine the following according to the requirements of the economic situation:

1. Maximum amount for deduction operations on one hand and for the loans and credit operations on the other hand. It shall also, if the need requires so, specify the distribution of these transactions among the various economic fields. The Council may also determine the distribution of the ceilings of these transactions among the banks.

2. Interest ratios on deduction, the credit and loans operations and their general conditions.

It is impermissible to accept in the coverage of the public crediting operations except the following claims:

1. The frozen state debt evaluated at the date of this law enforcement.

2. A credit without interest granted to the Finance Ministry to secure cash money to the treasury not in excess of twenty percent of the revenues of the estimated budget for the current cycle within the following conditions:
   

   1. This credit should not exceed one fifth of the actual revenues of the past cycle.

   2. This credit must be paid before the end of the third quarter of the current financial year.

3. Treasury bonds issued or that may be issued by the state against the guarantees stipulated in articles 26 and 66 of this law. These bonds must be without interest.

4. Treasury bonds issued by the state against its underwriting in the International Monetary Fund (IMF), the International Bank, the international and Arab financial institutions, regional institutions defined by law, state contributions in the capital of Arab and international companies whose agreements or articles of associations are attested by a legislative deed.

5. Treasury bills and bonds upon need required for the public interest and requirements of economic and social development and loan bonds issued by the state or guaranteed thereby provided that these bills or bonds are issued by legislative bill.

6. Bonds signed by owners and beneficiaries from irrigation projects edited thereby against cost recovery resulting from the irrigation and reclamation of lands included in these projects, their improvement or sale. These bonds must be accompanied by a real estate mortgage or any other in-kind guarantee acceptable to the Credit or Monetary Council that determines the maximum amounts that may be borrowed pursuant to this paragraph.
   

Public bonds placed in the coverage shall be registered in their purchase price if the price is equal to the value of their payment or less than them. Value of their payment shall be registered if the purchase price is more than them.

1. Without prejudice to the provisions of article 14, minting of money and official silver and gold moulds shall be restricted to the Central Bank of Syria.

2. The golden or silver coins shall not have the legal circulation capacity unless decree is issued upon the proposal of the Credit and Monetary Council stipulating otherwise.

1. Minting of money and silver and golden moulds shall take place upon the proposal of the Credit and Monetary Council and the approval of the Minister of Economy& Foreign Trade.

2. Type of the golden and silver prices, caliber, weight, measurement, tolerance degree, all other specifications and maximum quantities required to be minted from each category shall be determined by a decree issued upon the recommendation of the Credit and Monetary Council and proposal of the Minister of Economy& Foreign Trade.

3. The golden and silver coins shall be put in circulation by a decision from the Minister of Economy& Foreign Trade upon the proposal of the Credit and Monetary Council.

Costs of metals purchase and minting and all additional costs shall be born by the Central Bank of Syria.

The Central Bank of Syria shall place the golden and silver coins in circulation for its account according to the principles determined by the Minister of Economy& Foreign Trade upon the proposal of the Credit and Monetary Council inclusive these costs relevant to minting and all expenses and commissions on basis of receiving it from purchasers a weight of pure gold or silver equal at least to a weight of pure gold or silver specified pursuant to article 37 of golden or silver coins that are waived.

1. Golden or silver moulds shall not be put in circulation until their caliber and weight are verified.

2. Minutes of the audit operations shall be deposited at the Central Bank of Syria as well as depositing the tools used in this audit.

1. Each piece that meets the legal caliber and tolerance percentage in its weight is confirmative to provisions of article 37 shall be considered correct.

2. Golden or silver pieces that become incorrect due to erosion or use or that become, for any reason, broken or whose teeth are wiped out or rasped or when additional inscription is placed thereon, holes made therein, welded, washed by highly effective chemical liquids or those that in general have their shape is changed or deformed shall be broken by state fund's cashiers or by the Central Bank of Syria and shall be returned to their owners.

3. Forged or faked pieces shall be seized and Minutes of seizure shall be organized and sent to the public attorney to effect the legal matching pursuant to the provisions of laws in force.

Money of small categories mean the non precious coins issued by the state pursuant to the provisions of this law.

Money of small categories shall be minted in the following groups:Twenty-five piasters, fifty piasters, one hundred piasters, two pounds, five pounds, ten pounds, twenty-five pounds.

1. Money of small categories shall enjoy the legal circulation capacity and shall have an absolving power in the payment of debts and claims within the following maximum limits:

   1. Fifty 50 Syrian pounds for pieces of 25 twenty-five and fifty Syrian piasters.
   2. One thousand Syrian pounds for pieces of one hundred Syrian piasters category.
   3. Two thousand Syrian pounds for pieces of two Syrian pounds.
   4. Five thousand Syrian pounds for five Syrian pounds category.
   5. Ten thousand Syrian pounds for pieces of ten Syrian pounds category.

   6. Twenty-five thousand Syrian pounds for pieces of twenty-five Syrian pounds category.

2. However, state funds, Central Bank of Syria funds and of the banks registered according to the provisions of chapter four of this law shall have no right to refuse receiving the small coins of a value exceed the above-mentioned limits. They have to accept the small pieces of various categories without limitation of quantities whether for changing money papers or for payment of debts thereby.

1. Small coins minting shall be effected by the Central Bank of Syria upon the proposal of the Credit and Monetary Council and the approval of the Minister of Economy& Foreign Trade.

2. By a decision from the Minister of Economy& Foreign Trade, upon the proposal of the Credit and Monetary Council, the metal of coins pieces of small categories, their caliber, weight, dimensions, percentage of tolerance therein, all other descriptions and the maximum quantities required to be minted for each category shall be determined.

3. Categories of small coins shall be put in circulation by a decision from the Minister of Economy& Foreign Trade upon the proposal of Credit and Monetary Council.

The Central Bank of Syria shall bear the expenses of purchasing small coin metals, their minting expenses, all additional expenses as well as expenses of their circulation and all management expenses.

1. The Central Bank of Syria shall place money of small categories in circulation according to the need.

2. Said bank shall register, in a special account, the nominal value of the quantities placed in circulation, it shall also register the nominal value of the quantities withdrawn from circulation in same account.

1. The Central Bank of Syria shall withdraw from circulation coins of small categories deemed not meeting the technical conditions that make them valid for circulation.

2. Small coins pieces that lost their features, cut, of deformed teeth, fined, carrying holes therein, washed by chemicals, deformed or of changed shapes shall be withdrawn from circulation without indemnity to their holders.

1. The Minister of Economy& Foreign Trade shall have the right to decide withdrawing a category or more of the small coins and change them upon the proposal of Credit& Monetary Council.

2. Said withdrawal decision shall decide the change period that may not be less than six months upon the proposal of Credit& Monetary Council.

3. The coins that are not submitted for change prior to the expiry of the defined period shall lose their absolving power, shall be dropped from circulation and their value shall be the Central Bank's finally.

1. It shall be prohibited, under liability of the punishments stipulated in the laws in force, to sell coins of small categories and purchase them while they have legal circulation in Syria for a price in excess of their nominal value or for an additional amount. It shall be also banned to melt them or change their features in any means.

2. The Minister of Economy& Foreign Trade shall have the right to lift this ban by a justified decision.