Syria is preparing to release new banknotes on December 8, following a decision to remove two zeros from the national currency in order to regain public confidence in the Syrian pound.

Central Bank Governor Abdulkadir Husariyye said the new banknotes would be printed at two or three reliable international centers.Husariyye described this as a technical and regulatory step aimed at contributing to the economy.

Sources added that expert teams from the Central Bank and public banks will reassess existing loans (short, medium, and long-term) and reprice them according to the new currency values without changing their real value or interest rates. They are also reviewing possible errors in repayments.

 One of the most important consequences of removing two zeros from the Syrian pound was the revaluation of assets and liabilities. This will require financial institutions to revalue their fixed and current assets, affecting profits and financial payment capacity, and necessitating changes to laws and decrees related to the capital of these institutions. The change in the local currency will also require the adjustment of billing systems, pricing mechanisms, accounting records, and annual and semi-annual financial reports to align with the new values. This will require comprehensive updates to prevent errors in commercial transactions.

Changing the local currency will also require adjusting billing systems, pricing mechanisms, accounting records, and annual and semi-annual financial reports to align with the new values. This will require comprehensive updates to prevent errors in commercial transactions.

Karam Shaar, director of the Syria program at the Political and Economic Networks Observatory and an economic expert, stated that the decision to change the value of the Syrian currency was a completely sovereign decision made by the Central Bank.   As long as the new banknotes are printed in accordance with global standards and cannot be easily counterfeited, he emphasized that no international organization is required to verify them, as this falls entirely within the authority of the state.

Shaar noted that the decision currently belongs to the interim government, adding that at this stage, more urgent measures are needed to prevent the circulation of foreign currencies such as the Turkish lira and to rely primarily on the Syrian lira for internal transactions.According to the researcher, prioritizing the Syrian pound will increase its stability against foreign currencies, as the use of multiple currencies in different regions leads to instability and waste. (ILKHA)