Currency redenomination in Syria logistical measure – Economist
ALEPPO, Syria (North Press) – Economist Hayyan Habbaba in Aleppo told North Press on Sunday that issuing a new Syrian currency is a technical and logistical measure that will not improve the pound’s real purchasing power.
Habbaba said the redenomination announced by the Central Bank—removing zeros from banknotes—does not alter the currency’s underlying value. “Such a move cannot produce any real improvement in the purchasing power of the Syrian pound,” he said.
He added that the primary objective is to simplify daily transactions by reducing the physical volume of cash and easing the numerical burden created by large-denomination notes.
The step may also carry a psychological effect, he noted, by boosting public confidence and projecting a sense of entering a “new phase” following what authorities describe as a year of stability or “victory.”
According to Habbaba, the replacement of banknotes could also help withdraw cash circulating outside the formal banking sector—especially funds tied to corruption—and redirect it into official channels, allowing the Central Bank greater control over liquidity.
However, he stressed that improving the pound’s value and raising household income requires a comprehensive economic reform program, not a cosmetic currency change. “I do not expect any noticeable improvement in income as a result of this step alone,” he said.
The economist indicated that redenomination has no direct impact on the exchange rate, which is determined by broader indicators, including the Central Bank’s foreign currency reserves, the trade balance, GDP, export and import levels, and overall monetary policy.
“These indicators determine a currency’s value—not its technical form,” he said, noting that economists agree any new currency issuance only succeeds if accompanied by structural reforms.
Regarding the financial and banking system, he said the next priority must be unifying exchange rates and implementing a “managed float” system, as recently signaled by the Central Bank governor.
Reporting by Nayef al-Bayoosh