Syria’s Currency Revaluation: What Dropping Two Zeros Means for Investors and Businesses
Syria to Introduce New Banknotes in Currency Overhaul
DAMASCUS: In an effort to restore public confidence in its severely devalued currency, Syria plans to issue new banknotes by removing two zeros from the Syrian pound, according to multiple sources and documents reviewed by Reuters.
This initiative aims to bolster the pound’s value, which has plummeted to unprecedented lows after a 14-year conflict that ended with the ousting of President Bashar al-Assad in December. Central Bank Governor Abdelkader Husrieh confirmed the move, stating that it forms a "strategic pillar" of the country’s fiscal and monetary reforms.
Husrieh disclosed during an interview with Al Arabiya, a Saudi state-owned broadcaster, that committees comprising officials from public and private banks, along with central bank experts, have been established to facilitate the necessary changes to the currency. He described the introduction of the new notes as a "necessity," although the timeline for their release remains "under review."
Since the outbreak of war in 2011, the Syrian pound has lost over 99% of its value, currently trading at approximately 10,000 pounds to the US dollar, compared to just 50 pounds prior to the conflict. This drastic depreciation has complicated daily transactions and money transfers for citizens. Families often carry half a kilogram of 5,000-pound notes—the highest denomination currently in circulation—for their weekly grocery shopping.
In mid-August, the central bank notified private banks of its intent to issue new currency by "removing zeros," according to a confidential document seen by Reuters. Several banking officials, who requested anonymity, affirmed that this decision had been communicated to them before it was publicly announced.
Meetings regarding the currency overhaul, led by Central Bank Deputy Governor Mukhlis al-Nazer, have taken place with participation from commercial bankers. Neither al-Nazer nor Amal al-Masri, head of the central bank’s Banking Supervision Department, responded to requests for comment, and the finance ministry also declined to comment.
It remains unclear if the pound’s revaluation will require legislative approval. Syria is scheduled to conduct elections for a new legislative assembly in September. According to two bankers and one additional source familiar with the situation, Syria has reached an agreement with the Russian state-owned printing firm Goznak to produce the new banknotes.
Special Analysis by Omanet | Navigate Oman’s Market
The decision by Syria to remove two zeros from its currency signals an effort to restore confidence in a severely devalued economy, offering potential lessons for businesses in Oman regarding currency stability and public trust. This development presents investment opportunities in sectors poised to benefit from enhanced financial stability, while risks may arise from volatility if the reform does not meet public expectations. Smart investors and entrepreneurs should now consider the implications of currency reforms and fiscal policies, prioritizing strategies that leverage economic recovery in regional markets.
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