Syrian Interim Government faces backlash over Russian currency deal 

Seven informed sources and documents reviewed by Reuters revealed that the Syrian interim government is preparing to issue new banknotes with two zeros removed from the national currency.

According to an official document, the Central Bank of Syria notified private banks in mid-August of its intention to proceed with this measure. Five bankers, a Central Bank source, and a Syrian economic official confirmed that the plan involves removing two zeros, with banks expected to prepare for the issuance of the new notes by mid-October.

Reuters noted that it remains unclear whether the currency revaluation will require legislative approval. Banking sources in Syria disclosed that an agreement has been reached with the Russian state-owned company Goznak, which is subject to Western sanctions, to print the new currency. This agreement reportedly followed a visit to Moscow by a senior Syrian delegation in late July.

Syrian economist Karam Shaar, the UN advisor, stated that changing the banknotes bearing Bashar al-Assad’s image represents a necessary political shift, but he warned that the move could confuse consumers, particularly the elderly, in the absence of a clear regulatory framework or a comprehensive nationwide implementation plan, given the uneven territorial control across different regions.

Syrian researcher Malik Hafiz argued that the interim government’s potential decision to reprint Syrian currency in Russia through the state-owned Goznak represents a "dangerous slip."

 He clarified that the risk lies not in engaging with Moscow, but in the identity of the company itself, which is under U.S. sanctions and has a controversial history of printing billions of banknotes for eastern Libya—effectively creating a quasi-parallel currency lacking legitimacy.

Hafiz added that the political repercussions of such a move would be severe, as it could reinforce perceptions of the interim authority as lacking sound economic vision, potentially invite international objections, and even lead to new sanctions due to dealings with a sanctioned entity.

What should have been an opportunity to build trust could instead be interpreted as replicating the mechanisms of de facto authorities, thereby weakening the interim government’s position both domestically and internationally.

a.k

ANHA