Damascus, May 7 (SANA) Over the year since the formation of Syria’s first post-liberation government, the country has recorded notable progress in modernizing its monetary and financial system. Nearly four months after launching the replacement of the old currency, authorities say more than half of the monetary mass has already been exchanged, in what is considered one of the country’s most significant economic transformations, accompanied by structural reforms and long-term plans aimed at enhancing stability and international financial integration.
Significant Progress in Currency Replacement
Official indicators point to substantial progress in the implementation of the currency replacement process. Central Bank of Syria Governor Abdulkader Husrieh announced that “the equivalent of 56% of the old monetary mass has been replaced so far,” describing the achievement as having been realized within a record period of roughly four months since the process began early last January.
Husrieh said the operation was proceeding faster than expected, with daily inflows ranging between 12 and 13 billion Syrian pounds, reflecting broad public engagement and growing confidence in the measures being implemented.
He added that the performance made the replacement process “successful according to approved standards,” noting that recovering more than half of the circulating cash supply represents an important indicator of effective organization and management.
The replacement process includes removing two zeros from the old currency and issuing six new denominations — 500, 200, 100, 50, 25 and 10 pounds — featuring symbols of agricultural production such as wheat, citrus fruits, olives and cotton.
Structured Management and Growing Confidence
The Central Bank has managed the process exclusively through licensed banks and exchange companies in an effort to strengthen transparency and regulate cash circulation, which officials describe as the “natural place for the monetary mass,” in a move aimed at reinforcing the banking sector and limiting the informal economy.
Authorities also extended the replacement deadline until the end of June 2026 to provide greater flexibility for citizens and ensure smooth procedures, while both the old and new currencies continue circulating during the transitional period to maintain transactional stability.
Despite the progress, the process still faces challenges related to uneven geographic coverage. The central bank governor said efforts are underway to strengthen operations in provinces where implementation has lagged in order to accelerate the pace of replacement and achieve balance. New exchange centers are expected to open in Hasakah and Raqqa in the coming weeks to expand access and facilitate procedures.
Additional challenges remain regarding the use of smaller denominations in daily transactions, particularly in the public transportation sector, where fares still range between 2,500 and 4,000 old Syrian pounds, equivalent to 25 to 40 new Syrian pounds.
Accelerating Financial and Structural Reforms
Alongside the currency replacement process, Syria’s financial sector is witnessing broad reform efforts that include launching projects and initiatives aimed at modernizing financial infrastructure and improving efficiency.
Among the most notable steps was the launch of the Damascus Foreign Exchange and Gold Market, which the Central Bank described as a “turning point in the path of monetary reform” because it establishes an organized and transparent exchange market that reflects real economic conditions.
The Central Bank has also taken steps to advance digitalization by allowing transactions through global payment companies such as Visa and Mastercard. Husrieh described the move as “an important shift toward a more advanced digital economy,” helping reduce reliance on cash and expand financial inclusion.
International Re-engagement and Financial Reconnection
As part of efforts to reintegrate Syria into the global financial system, several developments have taken place, including the reactivation of the Central Bank’s account at the U.S. Federal Reserve and efforts to open correspondent accounts with central banks in Germany, Turkey and Canada.
Discussions are also underway regarding the reopening of banking channels with France and Austria, alongside attracting foreign investment, including the acquisition of a 49% stake in one Syrian bank by a Qatari entity.
In this context, Qatar’s QNB Group announced last week the launch of card acceptance and digital payment services in Syria following a recent Central Bank decision aimed at modernizing the country’s financial sector.
According to a statement by the group, the move represents an advanced stage in developing digital payment infrastructure and comes as part of the gradual expansion of electronic payment services in the Syrian market.
Husrieh said these measures reflect “improved performance in the financial sector and stronger confidence in monetary policies.”
Banking Sector Growth and Rising Investment
The banking sector is showing signs of recovery, with applications submitted for the establishment of new banks and growing interest from regional financial institutions seeking entry into the Syrian market. Expectations remain that the coming period will witness additional deals and measures aimed at strengthening the banking sector’s role in financing the economy and mobilizing savings.
The Central Bank says monetary stability remains a top priority and that improving economic indicators, increased capital inflows and broader international engagement are expected to support the Syrian pound in the coming period.
Despite economic pressures stemming from 14 years of war, as well as the repercussions of the ongoing U.S.-Iran conflict in the Gulf region and its impact on regional and international economies, financial analysts say the Syrian pound has maintained a relative degree of exchange-rate stability over the past year and has absorbed shocks with limited losses.
Comprehensive Strategy Through 2030
Within a long-term vision, the Central Bank of Syria launched its 2026–2030 strategy, which is based on five main pillars, including achieving sustainable monetary stability, building a transparent exchange market, developing a sound banking system, strengthening digital payments and achieving international financial integration.
According to the Central Bank, the strategy includes more than 30 programs and initiatives aimed at building a modern and globally integrated financial system.
Taken together, these indicators reflect substantial progress in managing one of the country’s most complex monetary operations while implementing deep reforms reshaping Syria’s financial sector.
As the currency replacement process continues at an accelerated pace, international engagement expands and digitalization projects advance, Syria appears to be steadily moving toward strengthening monetary stability and building a more efficient and transparent economy, supported by growing domestic confidence and expanding international partnerships.
ABD
