Cash shortages and rising prices put pressure on Syrian markets and families

Syrian markets have been engaged in an economic debate over available liquidity and its impact on market activity, purchasing power and delays in some payments since the new currency began circulating in early 2026. This comes as the Central Bank continues procedures to replace the old currency and develop cash and electronic payment tools.

University professor at a private university’s Faculty of Economics, Dalil Abed, told our agency that the economic situation following the introduction of the new currency has come under growing pressure linked to inflation and rising prices of goods and services, in addition to layoffs and an increase in unemployment of more than “60 percent.”

He noted declining sales and profits among a number of traders and rising commercial rents, prompting some businesses to close or suspend their operations.

He added that the prices of a number of bills, services and bread had risen by more than “tenfold,” while housing rents increased by up to “200 percent,” alongside higher transportation costs. He said these developments had increased pressure on the circulating money supply compared with financial needs in the markets.

He also pointed to delays in paying wheat farmers’ dues and the payment of those dues in installments, saying that limited liquidity was one of the factors that should be taken into account when explaining the delays.

In the same context, a former director of a state-owned bank, who asked not to be named, said delays in some dues, compensation payments and financial increases were due to limited circulating liquidity compared with rising prices.

He noted that housing costs had risen by more than 100 percent, alongside higher prices for goods and services and declining sales among some traders.

He added that monetary measures linked to the currency replacement process had increased the need for more flexible liquidity management, pointing to delays in some payments and the installment-based payment of compensation, in addition to difficulties facing some private-sector establishments.

On wheat, our agency published reports in July and August on delays of more than a month in paying for crops. The delays were linked to a financial and administrative bottleneck that prevented the completion of funding procedures before liquidity was injected to settle the outstanding payments.

Other reports highlighted continued complaints from farmers in Hasakah over delayed payments, with electronic transfer mechanisms being used in some cases.

In contrast, the Central Bank of Syria maintains that the currency replacement process did not involve an increase in the money supply.

Former Central Bank Governor Abdul Qader Al-Hassariya had explained when the new currency was launched that the process involved replacing one money supply with another, and that the bank would maintain the money supply without increasing or decreasing it, while periodically monitoring the replacement process.

The Central Bank also set the amount of currency in circulation at the time at around 42 trillion old Syrian pounds, equivalent to approximately 13 billion banknotes and coins.

In February, the Central Bank announced that 35 percent of the old money supply, worth 42 trillion pounds, had been replaced, while the value of the February salary payments made in the new currency reached 45 billion new Syrian pounds.

By the end of the replacement period, the bank announced that the replacement rate had exceeded 95 percent of the total money supply, according to preliminary estimates.

In its latest statements concerning the post-replacement phase, the Central Bank confirmed that it continues to assess cash circulation needs and take the necessary measures to meet the market’s demand for different denominations, while the withdrawal of the old currency continues through designated channels.

On September 3, 2026, Central Bank Governor Mohammed Safwat Raslan said work was continuing to develop tools to help regulate and stabilize the exchange rate and create a banking environment conducive to investors, alongside improvements to financial reporting and information.

The recent period has also seen a gradual shift toward expanding electronic payments. On September 3, the Central Bank announced the start of domestic payment operations using international cards such as Visa and Mastercard. Officials clarified that electronic payments are not intended to eliminate cash transactions, but rather to provide additional payment tools and reduce reliance on cash where suitable infrastructure is available.

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ANHA