Syria set to slash two zeros from its currency, printing done in Russia - Reuters

The governor of the Central Bank of Syria, Abdelkader Husrieh, said the timeline for introducing the new currency is still under review and emphasized that the change is necessary.

“We have formed committees with public and private banks and experts from the central bank to determine the requirements for changes,” he noted.

The Syrian pound has lost over 99% of its value since the war began in 2011, with the exchange rate now around 10,000 pounds per US dollar. Before the war, it was 50 pounds.

The sharp currency decline has made daily transactions and money transfers extremely difficult.

For example, Syrians go shopping carrying black plastic bags containing at least half a kilogram of 5,000-pound notes - the current highest denomination.

According to Syrian bankers cited by Reuters, roughly 40 trillion pounds are now in circulation outside the official financial system. Issuing new banknotes will give the government better control over cash in circulation.

Two bankers and another informed source reported that Syria has reached an agreement with the Russian state printing company Goznak to produce the new banknotes.

The deal was finalized when a high-level Syrian delegation visited Moscow at the end of July.

Goznak also printed Syrian currency during Bashar al-Assad’s rule. Currently, his face appears on the 2,000-pound note, while his father Hafez is featured on the 1,000-pound note.

Earlier, RBC-Ukraine reported on Syria’s political reform. Parliamentary elections are scheduled to take place from September 15 to 20 - the first since Bashar al-Assad was removed from power. The new parliament will be part of a transitional process led by interim President Ahmad al-Sharaa.

The elections will be held under the temporary constitution signed by al-Sharaa in March 2025. The document provides for the creation of a People’s Committee - a temporary parliament that will operate until a permanent constitution is adopted and full general elections are held. The process of establishing the new political system is expected to take several years.