Coinciding with the first anniversary of the fall of Bashar al-Assad’s regime, Syria is preparing to introduce a new national currency with two zeros removed from its value. Officials describe the measure as a central pillar of economic reform, aimed at curbing inflation, restoring confidence in the banking sector, and reinforcing monetary stability.
According to Reuters, Russia will handle the printing of the new currency. Observers note that this issuance carries strong symbolism as well as financial impact, marking Syria’s attempt to project a new political and economic chapter, attract foreign investment, and restructure its financial system in line with public expectations.
The Governor of Syria’s Central Bank told Al-Hadath TV that the change constitutes “a cornerstone of economic reform,” calling the new Syrian pound a “symbol of freedom” that will help stabilize markets. He added that the removal of zeros is intended to serve the economy, while the easing of banking sanctions has already contributed to lower inflation.
The Syrian pound, he said, has appreciated by roughly 35% since the regime’s fall, while the new banknote designs reflect the aspirations of Syrians. Plans are also underway to reconnect with the SWIFT payment system, restructure banks, issue dozens of new banking licenses, and create an investment-friendly financial sector.
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“Pivotal Step”
Dr. Osama al-Qadi, Senior Adviser at the Ministry of Economy and Industry, told +963 that currency replacement is “a pivotal step toward strengthening monetary stability,” particularly given the liquidity shortage now weighing on Syrian markets.
He explained that the measure, scheduled before year’s end and aligned with the anniversary of Assad’s ouster, is designed to address three urgent challenges: speculation, counterfeiting, and money laundering. At the same time, the new notes should restore liquidity, rebuild trust between banks and depositors, and empower the financial sector to play a more active role in Syria’s economic revival.
For success, al-Qadi stressed, precise planning is essential. If the launch date is indeed December 8, the infrastructure must be ready to support seamless withdrawals and deposits. He suggested providing at least one ATM for every 50,000 residents across provinces, alongside expanding electronic payments and point-of-sale systems nationwide, to ensure that the new currency is smoothly integrated into both physical and digital transactions.
“The success of the banking infrastructure is the prerequisite for the new pound to gain credibility and deliver the intended stability,” he emphasized.
Russian academic Roland Bejamov explained that Syria’s reliance on Moscow to print its currency stems from European firms suspending contracts a decade ago under sanctions. Since then, Russia’s state-run Goznak corporation, responsible for printing rubles, has become Syria’s default partner.
Bejamov noted that the 2,000-pound (2017) and 5,000-pound (2019) banknotes were both printed in Russia, making this latest step a continuation of an established arrangement. In his view, cutting zeros is “an important economic measure” designed to control the money supply and stabilize markets under rising financial pressure. Yet he acknowledged the outcome remains uncertain: “Will the Syrian leadership succeed in restoring trust in the national currency? That remains unresolved.” Stressing that Russia will continue to print Syrian banknotes as a contribution to supporting the government, especially in the context of the growing pragmatic relations between the two sides.
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Inflation Risks
Syrian economist Samir Tawil, however, urged caution. Speaking to +963, he argued that Syria’s plan is hardly novel; many countries, including Turkey and Iran, have attempted similar measures with mixed results. In Syria’s case, he warned, the move risks triggering “serious, potentially uncontrollable inflation effects,” given the central bank’s exhaustion and the fragility of an economy battered by more than 14 years of war.
Tawil stressed that deleting zeros should follow an in-depth study of inflation impacts and be accompanied by clear communication from the central bank. Without that, he said, the step could undermine credibility rather than restore it.
He suggested alternative strategies, pointing to Lebanon’s partial reliance on dollarization to tame inflation, a costly but less disruptive measure than a currency overhaul. “The cost of withdrawing old notes, printing new ones, and handling the logistical burden is immense,” he said, arguing that focus should instead shift toward broader anti-inflation reforms.
Tawil stressed that the Central Bank of Syria must conduct a thorough assessment of inflation levels and the potential consequences of any decision in this regard, especially as the Syrian economy is now grappling with inflation on both local and global fronts. He noted that inflation rates remain high despite some recent declines in prices, recalling that the dollar climbed to 20,000 and then 40,000 Syrian pounds by the end of 2024, before recovering after the regime’s fall to a range of 8,000–10,000 pounds per dollar.
What is needed, he argued, is not merely the removal of zeros but a broader package of anti-inflationary measures to prevent policy missteps from driving prices higher—particularly in a context of stagnant wages and a widening inflation gap.
On the question of who prints the new notes, Tawil explained that this depends on contracts signed by the central bank with designated companies, often for fixed terms, as was the case with Syria’s arrangement with Russia. He emphasized, however, that the location of printing is secondary and largely irrelevant to the economic outcome: “What matters is not where the notes are produced, but whether the policy itself is sound.”
He concluded that the current moment requires careful study before implementation. Otherwise, the currency reform could unleash significant inflationary consequences, further burdening the Syrian economy and the daily lives of citizens.
