Syria Announces Major Currency Reform to Simplify Transactions
On December 28 local time, the Central Bank of Syria held a press conference in Damascus to officially announce the issuance of the new Syrian Pound. The Governor of the Central Bank, Abdulkader Husrieh, stated that the core of this currency reform is redenomination, which involves removing two zeros from the denomination. This means 100 old Syrian Pounds will be exchanged for 1 new Syrian Pound, simplifying the increasingly cumbersome cash transactions.
Since the outbreak of conflict in 2011, the Syrian Pound has undergone devastating devaluation, with the exchange rate plummeting from the initial 1 dollar to 50 pounds to between 10,000 to 25,000 pounds in recent years. The massive devaluation has forced local citizens to carry bundles of cash to purchase essential goods. The Central Bank of Syria emphasized that this move is an important milestone in "financial liberation," aimed at mitigating the impact of inflationary pressures on people's daily lives by normalizing the monetary system and laying a credit foundation for post-war economic reconstruction.
Currency Exchange Process to Begin in 2026 for Three Months
According to the road map released by the Central Bank of Syria, the currency replacement process will officially begin on January 1, 2026. The initial legal exchange period is set for 90 days. However, the Central Bank Governor made it clear that the period may be extended if needed. To ensure social stability during the transition, there will be a coexistence period where both old and new currencies will have equal legal tender status.
Notably, starting from New Year's Day in 2026, all bank account balances, electronic payment accounts, and official settlement transactions will automatically switch to settlement in the new Syrian Pound. This means that from midnight on New Year's Day, Syria's financial system will be one step into the new currency era. To facilitate the public, the Syrian government will establish over 1,000 free exchange points nationwide to ensure that residents in remote areas can smoothly complete the currency replacement.
New Design Removes Old Political Symbols
The issuance of the new currency is seen not only as an economic measure but also as a symbol of a political new era. The Central Bank of Syria revealed that the design of the new notes strictly follows international security standards and advanced anti-counterfeiting measures, and completely removes political symbols such as portraits of former government leaders that have been printed on the currency over the past decades. Instead, the new currency design focuses on showcasing Syria's profound cultural heritage, rich history, and diverse geographical features.
The Governor of the Central Bank highlighted that the new currency's visual elements include ancient Syrian relics and progressive geographical symbols, aiming to reflect the people's shared aspiration for national stability, sovereignty, and future progress. Although some financial experts fear that the currency replacement might trigger short-term price fluctuations, the Central Bank insists that by maintaining the total money supply unchanged and only changing the denomination, inflation can be effectively prevented from worsening.
