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Syria plans to issue new banknotes by removing two zeros to curb inflation
Seven sources and documents reviewed by Reuters revealed that Syria is planning to issue new banknotes that will remove two zeros from its local currency, as part of efforts to restore confidence in the Syrian pound, which has experienced a severe decline in value. This initiative comes within the framework of an attempt to enhance monetary stability and facilitate daily transactions, representing an important symbolic step reflecting the political and economic changes underway in the country.
The measure aims to address the historic depreciation of the Syrian currency, which has lost more than 99% of its value since the start of the conflict in 2011. Currently, the exchange rate stands at around 10,000 pounds per dollar, compared to approximately 50 pounds before the war. This decline has made transactions and money transfers extremely difficult, with families relying on carrying bags filled with banknotes of up to 5,000 pounds.
According to the documents, the Central Bank of Syria informed private banks in mid-August of its intention to issue new currency that will remove two zeros from its value. Reuters sources confirmed that the decision is being implemented unofficially, with ongoing technical and legal preparations. A contract has been signed with the Russian company "Goznak" to print the new banknotes, following a Syrian delegation’s visit to Moscow in July.
In the context of the current situation, some sources indicated that reform steps include regulating the circulation of currency outside the official financial system. It is expected that a transitional period of up to 12 months will be allowed until December 2026, to enable the simultaneous circulation of old and new banknotes. The official announcement of the new currency is slated to coincide with the first anniversary of Assad’s ouster, accompanied by a media plan prior to the currency’s introduction into the markets.
Symbolically, the new banknotes will feature images of Bashar Assad’s face and the preservation of his regime, reflecting a clear political dimension. Issuing higher denominations, such as 20,000 or 50,000 pounds, may help facilitate monetary transactions and avoid the high costs associated with a comprehensive currency reform.
Ultimately, this decision holds strategic significance, especially amid the fragile financial infrastructure and concerns among some experts about its impact on consumers, particularly the elderly, with regulatory and financial challenges present across the country.
