Damascus plans to redesign and revalue its currency in a bid to restore confidence
Syria will print the banknotes for its redesigned and revalued currency in Russia, Reuters reported on Friday, citing sources. Damascus recently decided to give the severely devalued Syrian pound a makeover and remove two zeroes from the currency in order to ease transactions and restore confidence.
The Syrian pound has lost over 99% of its value since 2011, falling from 50 to around 10,000 per US dollar, crippling transactions and money transfers. On Friday, Central Bank Governor Abdelkader Husrieh announced plans for a new currency aimed at “strengthening customer confidence” and easing foreign transactions, calling the move a “necessity.”
Damascus reached a deal with Russian state-owned firm Goznak to print the new notes, according to two bankers and another source with alleged knowledge of the plans. The agreement was reportedly finalized during Syrian Foreign Minister Asaad al-Shaiban’s visit to Moscow in late July.
Goznak printed the Syrian currency during the rule of former President Bashar Assad, who was ousted last year in an offensive led by Islamist group Hayat Tahrir al-Sham (HTS). Assad, a close Moscow ally, was replaced by HTS leader Ahmed al-Sharaa. Earlier this year, reports emerged that the new government, despite maintaining ties with Russia, was exploring alternatives to Goznak, including firms in the UAE or Germany. Goznak is under Western sanctions over the Ukraine conflict.
The Syrian Finance Ministry and central bank, as well as Goznak, declined to comment.
Sources told Reuters one goal of the currency overhaul is to bring an estimated 40 trillion pounds circulating outside the formal financial system under oversight. The new notes will also reportedly no longer feature Assad or his father Hafez, whose portraits appear on the 2,000- and 1,000-pound bills, respectively.
Husrieh said a time frame to introduce the new currency was still “under review,” but Reuters’ sources claimed the rollout is planned for December 8 – the first anniversary of Assad’s ouster. The official launch will reportedly be followed by a 12-month “coexistence period” for the old and new notes.
