National currencies have always been a measure of a country’s economic strength and financial stability.
Amid Syria’s complex economic challenges, the Central Bank of Syria has announced plans to remove zeros from the national currency “Syrian Pound”—a technical measure aimed at simplifying daily cash transactions and restructuring the monetary system.
However, this move has sparked debate: is it merely a cosmetic change, or could it mark the beginning of a deeper economic reform that restores confidence in the Syrian pound?
Objectives of Removing Zeros from the Syrian Pound
According to statements from Central Bank Governor Abdel Qader Hasriya, the primary goals of this measure are:
- Simplifying daily financial transactions.
- Improving the quality of banknotes in circulation.
- Enhancing public confidence in Syria’s banking system.
- Supporting greater monetary stability in the medium term.
- Laying the groundwork for broader economic reforms.
Governor Hasriya explained that the process would occur gradually in three stages:
- Introducing the new currency alongside existing denominations.
- Gradual replacement without immediate withdrawal of current notes.
- Complete transition where exchanges are managed solely by the Central Bank of Syria.
Features of the New Currency
According to the Syrian Arab News Agency (SANA), the new currency will feature high technical specifications and modern anti-counterfeiting measures.
Banknotes will be printed by trusted international sources.
Key expected benefits include:
- Simplifying daily financial operations.
- Increasing public trust in the national currency.
- Strengthening monetary stability.
- Protecting small depositors.
- Supporting industrial and economic growth.
International Experiences in Removing Zeros
Syria is not the first country to undertake such a step.
Similar initiatives include:
- Turkey (2005): Removed six zeros from the Turkish lira after decades of high inflation.
- Brazil: Carried out multiple currency zero removals during periods of economic reform.
- France (1958): Introduced a new franc with the founding of the Fifth Republic.
These experiences show that the success of removing zeros depends heavily on accompanying comprehensive economic reforms rather than the technical change alone.
Expert Opinions on Removing Zeros from the Syrian Pound
Dr. Mazen Derwan: Minimal Direct Impact on the Economy
Economist Mazen Derwan believes that removing zeros “does not directly affect the economy.”
He emphasizes that the real factors are the money supply relative to GDP and the central bank’s reserves of foreign currency and gold.
Dr. Emad Al-Mosbah: A Technical Measure with Limited Long-Term Effect
Economist Emad Al-Mosbah considers zero removal a “sound technical measure” but likens it to a “pain reliever” or “digital facelift.”
He stresses that its success depends on:
- Structural reforms in agriculture, industry, and energy to create real economic value.
- A fair tax system that combats evasion.
- Balanced import and export policies to stabilize the trade balance.
- Control over inflation and exchange rates within stable limits.
Timing and Comprehensive Reforms: Keys to Success
International experiences from Turkey to Brazil highlight that timing, fiscal discipline, and structural reforms are crucial for successful zero-removal programs.
Without these conditions, the initiative remains a short-term technical adjustment that does not address the root of the economic crisis.
Removing Zeros From Syrian Pound: the 1st Step Toward Real Reform
Removing zeros from the Syrian pound represents a technical step aimed at simplifying transactions and boosting confidence in the currency.
However, it is not a cure for the economic crisis.
The success of this measure hinges on Syria’s ability to implement sustainable economic reforms covering production, taxation, trade policies, and monetary management.
Ultimately, the question remains: will removing zeros be the first step toward real reform, or merely a cosmetic adjustment that eases daily transactions without tackling the underlying crisis?
Source: Sky News Arabia
