Syria to remove two zeros from its banknotes

The governor of Syria's central bank, Abdul Qadir al-Hasriya, announced Monday that his country will modify its currency by removing two zeros from its banknotes and printing new bills to replace those issued under Bashar Assad’s regime.

Since the beginning of Syria’s civil war in 2011, the Syrian pound has collapsed, going from 50 pounds to the dollar to more than 10,000 pounds to the dollar, forcing Syrians to carry massive bundles of cash for everyday shopping.

The removal of two zeros from the banknotes "is a very important issue and will have no impact on the value of the currency," Hasriya said during a state TV interview.

He added that the old bills would simply be replaced with new ones, avoiding fresh inflation in a country hit by soaring prices since the war and years of economic sanctions.

"We will not increase the money supply, but we will replace the existing money supply," he said.

"The change in national currency is a sign of financial liberation after political liberation and the fall of the former regime," Hasriya added.

Restoring the value of the Syrian pound is one of the biggest challenges for the new Syrian authorities after the fall of Bashar Assad, whose image and that of his father Hafez, who ruled before him, appear on some bills.

The central bank plans to print six new denominations, the governor said.

The banknotes would be printed in several locations for logistical reasons and to be able to meet demand, he added, without stating who would print them or where.

After the start of the civil war, Syrian banknotes were printed exclusively in Russia, a close ally of the Assad government.

Since December, Damascus has received at least one shipment of banknotes printed in Russia.