Syrians fear inflation after currency change

The Syrian transitional government has decided to replace the old currency with a new one, removing two zeros. The Central Bank of Syria announced that the new Syrian pound will be launched on Sunday (December 28), with circulation beginning at the start of the new year, and that the new currency will include the removal of two zeros.

Amid the difficult living and economic conditions, the Syrian public has expressed concern over this step and fears exposure to a new wave of inflation.

A university professor, G.K., told ANHA Agency that all previous proposals implemented by the Central Bank involving new currencies or banknote denominations were accompanied by alarming inflation.

Commenting on the current situation, he said: “Today there are differences between the official exchange rate of the dollar against the Syrian pound and the rate used in pricing goods.

In commercial transactions, an exchange rate of 20,000 Syrian pounds per dollar is used, while the official bulletin sets it at 12,000 pounds—meaning it is higher than the black-market rate. This has never happened in any country, as the black market is always the highest.”

He warned against recycling the funds that will be collected from citizens during the exchange period, questioning the fate of money held outside Syria and in areas outside the control of the transitional government.

In turn, legal expert Iyad Hassani said that the currency replacement process is illegal because it lacks legislative cover. He explained that the Syrian currency (the lira) is a constitutional symbol and cannot be replaced without a legislative decree. He added that a legislative decree cannot be effective without the presence of constitutional and legitimate institutions approved by representatives of the Syrian people—something that, unfortunately, has not happened—raising many questions about the proposal.

Meanwhile, shareholders in the Damascus Securities Exchange expressed concern, as no instructions have been issued regarding share prices, how shares will be handled or priced, or the fate of frozen liquidity resulting from share sales that cannot be withdrawn due to Central Bank decisions.

Some traders also expressed fears over funds deposited in US dollars on the platform established by the former regime, which they have not been allowed to withdraw to this day, and concerns that these funds may lose value due to expected inflation.

Economic experts say that removing zeros does not change the purchasing power of the Syrian pound, but rather is an attempt to return the currency to the official state framework and its perceived natural place in people’s daily lives—also pointing to the removal of symbols of the former regime printed on previous banknotes. However, they warn that this move will have inflationary repercussions, which everyone fears.

a.k

ANHA