Syria Currency Reform (2026)

Syrian Currency Reform (2026) is a monetary adjustment that involves replacing the banknotes in circulation in Syria with a new series and accompanying redenomination (nominal simplification). The adjustment is based on the removal of two zeros; under this framework, the conversion rate of 100 old Syrian pounds equals 1 new Syrian pound has been adopted.^【1】 The legal basis for the reform is conveyed as Decision No. 293 of 2025; the Central Bank of Syria is identified as the primary institutional executor of the process in terms of authority and coordination.^【2】

^{One Frame from the New Syrian Pound Introductions (}Central Bank of Syria⁾

The effective date of the reform has been set as 1 January 2026.^【3】 The implementation is not limited to the introduction of new banknotes; it also encompasses a multi-layered transition framework including the simultaneous circulation of old and new currencies for a specified period, the institutions responsible for conversion, the conversion of bank accounts to the new unit, and rules governing the use of the new unit in market transactions. The Central Bank of Syria has indicated that the transition period is projected to last 90 days and may be extended through a defined decision-making mechanism.^【4】

Discussions on currency reform in Syria have emerged in the context of prolonged conflict, sanctions, and financial isolation, which have led to the depreciation of the national currency and its consequences for daily economic transactions. It is evident that the Syrian pound has significantly weakened since 2011, particularly with sharp increases in exchange rates throughout the 2020s, resulting in a growing practical burden of cash usage. This situation has generated a cash economy requiring the physical transport of large quantities of banknotes even for basic expenditures; the need for “normalization” in monetary stability and payment habits has been presented as one of the core elements underpinning the reform.^【5】

^{Introduction of Six New Banknotes (}Anadolu Ajansı⁾

A second key rationale for the reform concerns the relationship between monetary measures and public confidence. Sources indicate that the new banknote series and nominal simplification aim to reinforce confidence in the currency. In this context, redenomination is framed not as a measure that directly increases purchasing power, but as a tool that makes currency usage more manageable through improved transaction convenience and simplified calculations. Additionally, challenges related to the functioning of the banking system and liquidity management—including issues such as cash circulation, cash accessibility, and informal circulation—are indirectly referenced among the reform’s justifications; it is evident that the goal of enabling closer monitoring of cash in circulation through the new banknotes has been debated.

A third area of justification lies in the symbolic and representational dimension of the reform. Texts explicitly emphasize the move away from individual portraiture and the removal of political symbols associated with the previous era. This approach transforms the currency reform from a mere technical redenomination into a framework linked to narratives of “national identity” and “financial sovereignty” attributed to the new political era. At the same time, it is specifically noted that the reform alone does not signify economic recovery; economic revitalization depends on broader policy areas such as increased production, combatting unemployment, and strengthening the banking sector.

The legal foundation of the 2026 currency reform in Syria is established by Decision No. 293 of 2025. This regulation aims to introduce the “new Syrian currency unit” and define operational parameters for replacing old banknotes with new ones. Under the decision, the Central Bank of Syria is empowered to determine the timeline, implementation locations, and execution principles of the transition process; it is stated that necessary directives will be issued during the process.^【6】

Institutionally, the Central Bank has been assigned a central role in managing the transition operation and standardizing market practices. Within this framework, implementation directives have been announced progressively; conversion rate, duration and stages, authorized exchange points, pricing, and contract adaptations have been concretized through administrative texts. To ensure nationwide implementation of the operational infrastructure, it has been specified that exchange operations will be conducted within Syria’s borders; the official exchange network is described as comprising 59 financial institutions and over 1,500 branches.^【7】

^{Ahmed Al-Shara Introducing the New Banknotes (}Anadolu Ajansı⁾

The commencement of the transition process has been accepted as of 1 January 2026, with a projected duration of 90 days and a defined decision-making mechanism for potential extension. During the transition period, the simultaneous circulation of old and new banknotes has been adopted; it is emphasized that both currency units retain their legal tender status throughout this period. In the phased approach, priority has been given initially to the exchange of old banknotes of denominations 1,000, 2,000, and 5,000; the timelines for the status of other denominations are to be determined later.^【8】

Another pillar of the regulation is the objective of establishing a uniform application across the market. Accordingly, both public and private sectors are required to adopt the conversion rate in pricing, wages, contracts, and all financial obligations. Transparency is ensured by mandating that businesses display prices in both old and new currency units during the transition period. In the banking sector, it has been adopted that bank and electronic account balances will be expressed in the new currency unit as of 1 January 2026. Furthermore, it is stipulated that the exchange process is free of charge; no commission, fee, or tax may be levied under any name, and the implementation will be monitored by relevant institutions.

The technical backbone of the reform consists of the removal of two zeros from the currency’s nominal value. Under this adjustment, 100 old Syrian pounds are equivalent to 1 new Syrian pound; while preserving monetary value, the aim is to bring daily calculations and cash usage into a more manageable scale. The conversion rate is expected to be uniformly applied to prices, wages, contracts, and other financial obligations, thereby reducing potential confusion arising from the simultaneous use of different scales in the market.

It is stated that the new banknote series comprises six denominations. This structure has been designed to cover a range from small to large values, aiming to meet cash needs from retail transactions to higher-value payments within a single series. The variety of denominations is justified as a measure to reduce friction in cash-related operations such as change-making and cash top-ups.

^{One Image of the Old Syrian Pound (}Anadolu Ajansı⁾

A prominent design preference has been the avoidance of portraits and individual representations. This approach aims to shift the visual language away from “celebrating individuals” toward a more general and symbolic framework. Visual compositions highlight symbols associated with agriculture and local production—for example, various agricultural products such as wheat and plant elements—while political figures and portraits from the previous era have been removed from the banknotes.^【9】 It is evident that the design seeks to represent national identity in a contemporary language and to break the visual continuity with the political symbols of the past.

In terms of design principles, the banknotes are described as moving toward a simpler, more legible, and easily verifiable visual structure. In this context, a “clean” and “abstract/symbolic” design language is framed as a functional choice that enhances both usability and detectability. When considered together, the technical regulation and design approach reveal that the reform embodies not only a nominal simplification aimed at transactional convenience but also a reconfiguration of the representational regime through banknote iconography.

The implementation schedule for the currency reform is based on the commencement of exchange operations on 1 January 2026. The transition period is structured to last 90 days, with the possibility of extension through a decision issued before the end date. This scheduling demonstrates that the conversion is designed not as a short-term operation but as a limited “transition regime” managed through specific administrative thresholds and publicly announced deadlines.

One of the core elements of the exchange mechanism is the principle of simultaneous circulation of old and new currency units during the transition period. This principle means that both banknote series retain their legal tender status throughout the transition. The implementation simultaneously aims to introduce new denominations into circulation and systematically withdraw old banknotes, thereby preventing abrupt disruptions in cash supply and panic behavior in the market.

^{Abdulkadir Husri, Governor of the Central Bank of Syria, Making a Statement on the New Banknotes (}Anadolu Ajansı⁾

In terms of phasing, the transition began with the higher denominations. Priority has been given to exchanging old banknotes of denominations 1,000, 2,000, and 5,000; the approach of deferring detailed scheduling for other denominations has been adopted. This method is understood as a strategy to rapidly simplify cash logistics and calculation scales by converting the most widely circulated high-denomination banknotes first.

The locations where exchange operations will be conducted constitute a decisive administrative component of the reform’s implementation. Accordingly, exchanges are to be carried out within Syria, exclusively through officially authorized centers, with the authorized network encompassing 59 financial institutions and over 1,500 branches. This ensures a nationwide distribution and acceptance infrastructure, aiming to mitigate capacity bottlenecks that could arise from concentrating exchange operations solely in central locations.

When evaluated together, the schedule, the principle of simultaneous circulation, the phased transition starting with high denominations, and the extensive exchange center network reveal that the operational design of the currency reform is structured around a “short-term but widely accessible” transition period, with special emphasis placed on managing market behavior through detailed administrative and technical provisions.

The primary objective in implementing the currency reform has been to establish the conversion rate as a singular and binding standard in the market. Accordingly, both public and private sectors are required to adopt the conversion rate in pricing, wages, salaries, contracts, and all financial obligations. To ensure transparency during the transition period, businesses are required to display prices in both old and new currency units. In the same direction, the approach of officially announcing exchange rates for both currency units through official bulletins has been adopted, aiming to reduce risks of discrimination, uncertainty, and speculative pricing during implementation.

An integral part of the transformation in banking and recorded payments has been the re-denomination of account balances in the new currency unit. As of 1 January 2026, bank and electronic account balances will be defined in terms of the new Syrian pound, aiming to ensure consistency between cash exchange and accounting unit conversion. Regarding contracts and documentation, a framework has been adopted whereby the new currency unit becomes the primary reference in financial documents from the start of the transition period, with explicit indication of the currency type required on all documents.

^{Final Transactions Conducted in Old Syrian Pounds (}Anadolu Ajansı⁾

The free execution of the exchange process has been one of the distinguishing features of the implementation principles. Any form of commission, fee, tax, or deduction under any name has been prohibited; this prohibition is considered critical to preserving public trust in the process and preventing cost-based inequalities. The principle that monitoring and oversight responsibilities fall to the Central Bank and relevant public institutions completes this framework.

In terms of communication, the reform aims to avoid triggering panic behavior and prevent sudden demand surges from exerting pressure on exchange rates and prices. To this end, the emphasis has been placed on a phased transition, urging the public to avoid hasty exchange behavior. Attention has been drawn to the risks of speculative transactions and opportunism, with a strong emphasis on maintaining market discipline and managing liquidity progressively during the transition period.

The main focus of discussions surrounding the reform has been the potential indirect effects of redenomination on inflation and purchasing power.

It has been clarified that the conversion is technically a nominal simplification that does not alter intrinsic value; however, risks have emerged during implementation related to price re-labeling, perceptual pricing, and transition-period behavior. On the international level, efforts to reintegrate Syria’s banking system with external financial networks—through engagement with platforms such as SWIFT and Sibos—and supply chains for banknote printing have gained visibility as complementary aspects of the reform. Taken together, these components indicate that the currency reform functions both as a transformation program governed by technical and administrative rules and as a transition process tested by market confidence and governance capacity.