Syria has begun circulating new banknotes as part of a broader effort to stabilize its economy following the collapse of Bashar Assad’s government, marking one of the most significant monetary reforms in the country’s recent history.
A presidential decree issued earlier this week by President Ahmad al-Sharaa outlines a gradual withdrawal of the “old Syrian currency” according to a timetable set by the central bank and executed through designated exchange centers. Central Bank Governor Mokhles Nazer said preparations had been underway for months and confirmed that the exchange process officially started on Saturday.
Redenomination aims to simplify the currency
Under the decree published by the state news agency SANA, the new Syrian currency is being introduced by removing two zeros from the nominal value of existing banknotes. As a result, every 100 Syrian pounds under the old system now equals one Syrian pound under the new denomination.
The reform also reduces headline note values. The largest banknote in circulation previously stood at 5,000 Syrian pounds, while the highest denomination under the new system is set at 500 pounds. Authorities say the change is intended to simplify transactions, accounting and pricing after years of high inflation.
Exchange rates reflect years of economic strain
On Saturday, the US dollar was trading at around 11,800 Syrian pounds based on the old banknotes at exchange shops in Damascus, many of which still feature images of Bashar Assad and his late father, Hafez Assad. By contrast, at the onset of Syria’s conflict in March 2011, the dollar was valued at just 47 Syrian pounds, underscoring the scale of the currency’s collapse over more than a decade of war.
Post-Assad transition and sanctions relief
Since insurgent forces led by al-Sharaa’s Hayat Tahrir al-Sham entered Damascus in December 2024, ending more than five decades of Assad family rule, the new authorities have moved to rebuild an economy devastated by prolonged conflict and international isolation.
In a key external development, the United States and the European Union have lifted most of the sanctions imposed during Assad’s tenure. Combined with the currency reform, officials hope the easing of restrictions will help restore confidence, improve liquidity and lay the groundwork for a more stable monetary environment in the months ahead.
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