The state of the Syrian pound reflects broader economic challenges facing the country. Discussions around stabilizing the currency are closely tied to the need for comprehensive economic reforms. A banknote is not merely a medium of exchange; it is a symbolic document that reflects national identity, making its design and message both politically and economically significant.
Over the past decade, the Syrian pound has experienced repeated devaluations and redesigns. Today’s notes prominently feature members of the Assad family, fueling both technical and political calls for a complete currency overhaul.
Due to international sanctions that have crippled domestic production, Syria has relied on foreign partners to print its currency, primarily turning to Russia since 2017. European countries were ruled out early on, due to long-standing sanctions predating the Caesar Act.
According to recent reports, Damascus received two shipments of printed banknotes from Russia on February 14 and March 5 of this year. The second shipment weighed approximately six tons and was valued at around 300 billion Syrian pounds. These deliveries stem from a previous agreement signed before December 8, 2024, between Russia and the former Syrian government, explaining the delay in subsequent batches.
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A Shift Towards Europe?
In a surprising development, Michael Unmacht, The Chargé d’Affaires of the European Union delegation to Syria, announced on March 16 that the printing of Syrian currency in the EU may be possible in the future. This comes after the EU eased some sanctions on key sectors such as transport, energy, and financial exchanges. The decision also included unfreezing five Syrian banking institutions and allowing funds to be provided to the Central Bank of Syria, opening the door for potential printing partnerships, particularly with Austria.
However, economists warn that printing more of the old currency without introducing a “new pound” could lead to wasted public funds without offering meaningful improvement to macroeconomic stability or currency confidence.
Political Alliances Determine Printing Partners
Sidqi Othman, a researcher specializing in Russian affairs based in Krasnodar, Russia, told +963 that Syria’s choice of currency printing partner is inherently political. He noted that Russia has been printing Syrian currency since 2009 due to its strong ties with Damascus, and that Iran has also been involved in some print runs, often facilitated through Russian intermediaries.
Othman emphasized that cost is only one aspect of the printing equation. More important are access to foreign reserves and global banking networks, both of which remain severely limited for Syria. This makes domestic printing unfeasible, and necessitates printing abroad, guided by market needs and economic capacity.
He estimates that the required increase in currency supply is about 1.5% of the total liquidity in circulation, which demands detailed knowledge of the national budget and expenditure plans, especially amid a shifting political leadership.
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Printing Costs and Available Options
From Ottawa, economic advisor Osama Qadi explained that the most recent currency batch received by Syria was part of a previous contract with Russia, which may not be renewed. He noted that although printing in Russia is cost-effective, the option is becoming increasingly unviable due to shifting political and security considerations.
Qadi highlighted other countries with advanced currency printing capabilities, including the UK, Germany, and the UAE. He pointed out that the UAE recently printed its own high-quality, water- and counterfeit-resistant notes, indicating a potential model for Syria.
Currency printing is expensive, primarily due to the high-quality paper, ink, and embedded security features required. For this reason, nations prefer to work with politically allied states that can provide cutting-edge technology. Qadi suggested Syria seek a friendly nation to produce a temporary batch of 5,000-pound notes to alleviate liquidity shortages and curb counterfeiting, ideally under a payment plan spread across three annual installments.
The Case for a New Syrian Pound
Qadi further argued that Syria must seriously consider launching a new version of its currency—removing one or two zeros from existing denominations—once a fair market exchange rate is established, in conjunction with expected investment inflows. Such a move would necessitate more than just reprinting money; it would require comprehensive monetary and economic reforms that restore trust in the financial system.
Ex-Central Bank Chief Faces Charges
Adib Mayaleh, who served as the Governor of the Central Bank of Syria from 2006 to 2016 and as Minister of Economy and Foreign Trade until 2017, currently resides in France and holds French citizenship since 1993. In December 2022, he was charged with complicity in crimes against humanity, war crimes, and money laundering, and accused of being part of a conspiracy to commit such acts.
