Syria to revalue currency, dropping two zeros in bid for stability
Move aims to restore confidence in weakened pound after years of war and economic collapse
DAMASCUS, Syria (MNTV) — Syria will introduce new banknotes removing two zeros from its currency in an effort to stabilize the economy and rebuild confidence in the pound, which has lost nearly all its value since the country’s conflict erupted in 2011.
The revaluation, discussed in recent meetings led by Central Bank Deputy Governor Mukhlis Al-Nazer, is expected to be formally launched on December 8, reported Arab News.
The pound, once valued at 50 to the US dollar, now trades at around 10,000, marking a drop of more than 99 percent.
Daily life in Syria has become increasingly strained by the currency’s collapse, with families often forced to carry bags filled with 5,000-pound notes, currently the largest denomination, to cover basic groceries.
The move to simplify transactions and restore monetary stability follows consultations between the central bank and private lenders earlier this month.
According to five commercial bankers, one central bank official, and a Syrian economic source, the plan involves removing two zeros from existing notes.
The group confirmed that Syria has contracted Russian state-owned firm Goznak, which printed the country’s currency during the Assad era, to produce the new bills following a high-level Syrian delegation’s visit to Moscow in late July.
While the central bank and finance ministry declined to comment, insiders said lenders have been instructed to prepare their systems for the rollout by mid-October.
Internal circulars requested banks to provide reports on infrastructure, including cash counters, cameras, and storage facilities, and to run tests ensuring automated systems could accommodate the new notes.
The plan will also include a 12-month “coexistence period,” allowing both the old and new currencies to circulate until December 2026. Officials are expected to launch a public information campaign in the coming weeks to ease the transition.
Economists noted that the initiative carries both financial and symbolic significance. Replacing notes bearing the images of Bashar and Hafez Assad is seen as a political shift by Syria’s new leadership, which has moved away from decades of authoritarian rule toward pledges of a more open, market-driven economy.
However, experts cautioned that the revaluation alone would not resolve deeper structural issues.
Karam Shaar, a Syrian economist advising the United Nations, said the overhaul could prove confusing for consumers, particularly the elderly, and questioned whether Syria’s fragmented institutions could enforce the change nationwide.
He added that issuing higher-denomination notes—such as 20,000 or 50,000 pounds—might have been a less costly alternative to ease cash handling, while avoiding the hundreds of millions of dollars likely required for a full currency replacement.
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