Syria to Revalue Currency: Removing Zeros in Bid to Restore Confidence

Syria Plans to Issue New Currency by Removing Zeros

In an attempt to restore shaken confidence in the national currency, media sources have revealed Syria's readiness to issue a new version of the Syrian pound, removing two zeros from the value of each banknote. This move comes amid a severe economic downturn and a record decline in the value of the Syrian pound, where the exchange rate has exceeded 10,000 pounds against one US dollar, after being only 50 pounds before the crisis began in 2011.

This measure aims to simplify commercial transactions and facilitate the transfer of funds, after the amounts of cash needed to purchase basic goods required large quantities of banknotes. For example, weekly grocery purchases require the use of at least half a kilogram of the 5,000 Syrian pound denomination, which is currently the largest denomination in circulation.

Preparations Underway to Launch New Currency

According to media reports, the Central Bank of Syria has issued directives to commercial banks to prepare for the launch of the new currency by December 8, which coincides with the first anniversary of President Bashar al-Assad's resignation, according to the original text. These preparations include submitting detailed reports on the banks' infrastructure, including the number of cameras, banknote counting machines, and storage capacities, in addition to conducting tests to ensure the ability of automated systems to handle the new currency.

It is expected that the old and new currencies will be traded side by side for 12 months, until December 8, 2026. This measure reflects the authorities' keenness to ensure a smooth transition and avoid any confusion that citizens may face.

Concerns and Challenges

Despite the stated goals of this move, it also raises some concerns and challenges. Some economic experts warn that revaluing the currency may cause confusion for consumers, especially the elderly, and it may also require exorbitant costs to implement on a large scale. In addition, this step may not achieve its desired goals if it is not supported by other economic measures aimed at addressing the root causes of the economic crisis.

Printing New Currency in Russia

Reports indicate that the Syrian government has agreed with the Russian state-owned company Goznak to print the new currency. This company had printed the Syrian currency during the era of President Bashar al-Assad.

Is It a Necessary Step?

Some believe that replacing the currency that bears images of Bashar al-Assad and Hafez al-Assad represents a necessary political shift. However, others warn that this step may not be enough to achieve the desired economic stability.

In conclusion, it remains to be seen whether this step will succeed in achieving its desired goals, or whether it will be just a cosmetic procedure that will not change the bitter economic reality experienced by the Syrian people.