DAMASCUS - Facing mounting economic pressure, Syria is weighing whether to introduce new banknotes or carry out a broader overhaul of its currency. The Central Bank of Syria confirmed on Sunday that it is continuing to print Syrian pounds in partnership with a Russian firm, responding to widespread speculation about potential changes to the national currency.
In a statement shared exclusively with The Media Line, the Central Bank stated it was “continuing to print quantities of banknotes with the Russian company previously contracted,” and emphasized that the process adhered to “official standards and technical safeguards.” While rumors persist about a possible complete redesign or reissue of the currency, officials said such proposals remain under review, with no final decision yet taken. The bank added that detailed economic and technical evaluations would precede any action.
The Syrian pound has suffered catastrophic depreciation since the start of the civil war in 2011. Back then, one US dollar could be exchanged for roughly 47 Syrian pounds. Today, the black-market rate has surpassed 15,000 pounds to the dollar—a collapse reflecting more than a decade of conflict, economic isolation, and domestic instability.
The pound’s decline has come in distinct phases. From 2011 to 2013, initial depreciation was tied to war-related disruptions, a steep drop in tourism, and a collapse in foreign investment. Between 2014 and 2016, international financial sanctions squeezed Syria’s foreign reserves. From 2017 to 2019, the budget deficit widened sharply, and the government began financing public spending by printing more money. Since 2020, the situation has worsened as Lebanon’s banking collapse spilled over into Syria, trust in the local financial system eroded, and inflation surged.
The Central Bank’s strategy of printing money to cover government expenses, without the backing of economic productivity or foreign currency reserves, has fueled hyperinflation. Syrians have seen their purchasing power evaporate, while the widening gap between the official exchange rate and the black market has deepened public frustration and further destabilized the economy.
What about Russia's involvement?
Compounding the crisis is Syria’s reliance on foreign companies to print its currency. Since 2018, Syrian banknotes have been produced in Russia under a formal agreement. According to a source at the Central Bank, other international firms have recently offered to take over currency printing, both for paper and coinage. These proposals are still being evaluated, with a focus on quality, cost, and security features. The source clarified that despite new bids, printing remains exclusively outsourced to Russia for now.
This dependence raises questions about Syria’s financial sovereignty. Printing currency abroad limits domestic oversight over the money supply and increases vulnerability to political or logistical complications. Yet the country’s limited domestic infrastructure leaves few alternatives.
While no immediate changes to the currency have been announced, pressure is mounting. Any future decision to introduce new denominations or replace existing notes would need to be backed by broader structural reforms. Monetary experts argue that without tackling Syria’s underlying economic challenges—such as corruption, capital flight, and sanctions—a revamped currency alone will not restore financial stability.
The Central Bank’s leadership has expressed caution, acknowledging that trust in the pound cannot be rebuilt through cosmetic changes. “Future steps must be linked to genuine economic reforms,” the bank said, adding that only a comprehensive approach can restore confidence among Syrian citizens and attract badly needed investment.
For now, the Syrian pound remains in freefall, and questions linger over how much longer the current system can endure without major intervention.