Syria to slash zeros from currency, print new banknotes: Reuters
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Syria prepares to remove two zeros from its currency amid economic collapse, with Goznak to print new notes and a rollout set for December.
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Syrian lira banknotes at the Commercial Bank of Syria in Damascus, on November 10, 2022 (AFP)
In an effort to restore public confidence in its severely devalued currency, Syria is preparing to issue new banknotes that will remove two zeros from the pound, according to seven sources familiar with the matter and documents reviewed by Reuters.
In an effort to strengthen the Syrian pound, whose purchasing power has collapsed to record lows following a 14-year conflict, and in a bid to ease transactions and improve monetary stability, Syria's central bank informed private banks in mid-August of its intention to issue a new currency by removing zeros, according to a document seen by Reuters.
According to five commercial bankers, one central bank source, and one Syrian economic official, all of whom spoke to Reuters on the condition of anonymity to discuss a decision that has not yet been made public, the central bank later informed them that two zeros would be removed.
According to the commercial bankers who attended the meetings on the currency overhaul, they have been chaired by Central Bank Deputy Governor Mukhlis al-Nazer. Al-Nazer did not answer Reuters' request for comments, and the head of the central bank's Banking Supervision Department, Amal al-Masri, also declined to comment, citing the confidentiality surrounding the matter.
Russian firm to handle printing the new notes
According to two of the bankers and another Syrian source familiar with the matter, Syria had agreed with Russian state-owned money printing firm Goznak to produce the new notes, with the deal finalized when a senior Syrian delegation visited Moscow in late July, according to Reuters. Goznak is the same firm that printed Syrian banknotes for the Assad regime.
According to three of the Syrian bankers, the primary driving force behind the planned currency overhaul is the concern over an estimated 40 trillion pounds circulating outside Syria's formal financial system, which would grant the government better oversight over the cash in circulation by issuing new notes.
In preparation for the formal launch of the new notes on December 8, the first anniversary of Assad's ouster, officials plan an information campaign in the coming weeks, while two commercial bank directors told Reuters that Syria's central bank has instructed lenders to be ready for the rollout by mid-October.
Central bank circulars seen by Reuters asked banks to produce detailed reports on their infrastructure, including the number of cameras, cash counters, and storage capacity, and to run tests ensuring automated systems could handle the new currency.
