Damascus, January 1 (QNA) - Syrian economic experts have affirmed that the decision to issue a new Syrian currency, after removing two zeros from banknotes, comes within a plan aimed at strengthening monetary stability, restoring confidence in the Syrian pound, and facilitating financial transactions for citizens.

Executive Director of the Eqtisadi platform Younes Al Karim believes that the success of issuing the new Syrian currency is not linked solely to direct monetary measures, but rather requires a host of supporting structural factors, the most important of which are mechanisms for coordination and financial support.

Al Karim added, in statements to the Qatar News Agency (QNA), that depositing funds and providing support lines from friendly countries through the Central Bank of Syria constitute a key lever for increasing the new currency’s circulation potential and strengthening its presence in the local market.

He stressed that the engagement of major investors and large companies in terms of using the Syrian pound in their investment operations (by converting part of their liquidity from foreign currencies into the local currency) represents a pivotal condition that provides real support for the new issuance and enhances operational confidence in it within the market.

He also noted that the Central Bank of Syria has a limited time window to entrench confidence in the new currency issuance, beginning with the announcement of a clear monetary policy framework, including the publication of the currency issuance decree and the circulation of implementing regulations governing the mechanisms for its issuance and circulation.

He emphasized the need to launch wide awareness campaigns explaining to Syrians how to deal with the new pound, as well as the security levels and technologies used to protect it from counterfeiting. He also stressed the necessity of holding dialogue with economic and financial experts as a fundamental step to reassure Syrians about the fate of their savings and assets, explain tools for preserving their value, and clarify mechanisms for coordinating commercial and financial operations during the transitional phase to ensure smooth transactions and market stability.

Al Karim added that entrenching the neutrality and independence of the Central Bank of Syria from pressures linked to fiscal policy constitutes a cornerstone for the success of any monetary reform, as it enables the bank to make decisions on professional grounds and away from non-economic considerations.

He also stressed the importance of strengthening channels of institutional coordination between the Ministry of Finance, the Ministry of Economy, investment bodies and funds, and the central bank, to ensure alignment between fiscal and economic policies and monetary policy orientations. This, he said, contributes to controlling the public budget, improving the investment climate, and raising the level of acceptance of the Syrian pound in commercial and financial activities during the coming phase.

He went on to say that the success of the currency replacement process requires precise control of monetary policies and their implementation mechanisms, particularly by ensuring the transparency of the Central Bank of Syria and the clarity of its procedures throughout all stages of the replacement process. He added that the role of the central bank must be characterized by firmness and discipline to prevent any violations, exploitation, or irregular exchange operations, and to avoid dual circulation on one hand and speculation involving the old and new pounds on the other.

Al Karim said that reactivating the banking sector and lifting restrictions on liquidity would inject funds into the market regularly and circulate the new currency, thereby removing the old one in the shortest possible time and ensuring that liquidity does not exit the financial system during the transitional period. He noted that controlling money flows and tightening oversight of exchange operations represent the decisive factor in the success of issuing the new currency and consolidating its stability in the market.

For his part, Head of the Finance and Banking Department at the Syrian Arab International University Dr. Mohammed Al Jashi affirmed that issuing the new currency represents an important indicator of economic recovery, reflecting a positive image for foreign investors regarding Syrian trends toward restructuring the economy and emerging from prolonged financial crises.

Al Jashi noted, in statements to QNA, that this step also carries political dimensions by removing symbols of the former regime from banknotes, thus completing the concept of liberation and national emancipation.

He added that the current economic benefits of the step lie in easing the burdens of transporting and circulating money among Syrians, but that it faces clear implementation challenges, as there will be a period during which two sets of currency will circulate, potentially leading to confusion in markets.

He added that the weakness of the banking infrastructure, due to damage to a large number of branches in various regions of the country, will create congestion and difficulties for Syrians and companies seeking to exchange currency, in addition to challenges related to damaged banknotes, counting, and bundling.

He also said that the Central Bank of Syria is required to provide the necessary quantities for currency exchange, especially since Syrians’ trust in banks represents another challenge, given their concerns over liquidity-freezing policies applied since the fall of the former regime until now.

The Head of the Finance and Banking Department at the Syrian Arab International University pointed out that the value of the pound is fundamentally linked to factors of production, investment, exports, and imports, and that removing two zeros represents a mathematical procedure whose effects do not exceed the limits of internal and external economic changes.

He stressed that strengthening confidence in the new pound requires the government and the Central Bank of Syria to control currency fluctuations and maintain monetary stability, in addition to reducing reliance on the dollar in domestic transactions by monitoring the black market and speculation, and rebuilding the bank’s reserves to support the pound when necessary.

In turn, Mahmoud Khalil, an economic researcher in business administration, affirmed that the most important factor in exchange-rate stability after issuance is the confidence of market participants. He noted that the initial impact on inflation may be a slight increase due to price rounding, but government intervention would significantly reduce the rate.

The researcher added, in statements to QNA, that the step represents a bold decision but must be accompanied by close monitoring of markets and pricing, as well as genuine economic reforms that include supporting local production and protecting consumers, to ensure the measure has a tangible impact.

He warned of challenges in implementing the new currency for the banking system, including the availability of cash liquidity in all denominations in appropriate quantities, and the level of banking and technical infrastructure and its ability to deal with the new system, including ATMs, electronic payment networks, and bank transfers.

The researcher said that these sectors will face significant pressure during the transition period, pointing to market challenges, including exploitation of the phase and the specified 90-day exchange period, which necessitates close monitoring of pricing and ensuring acceptance of the old currency.

He also emphasized the importance of secure banking infrastructure, tightening price controls, preventing fraud, and completing the exchange process without negative repercussions, while confining all domestic transactions to the Syrian pound.

The researcher said that the success of issuing the new Syrian currency requires organized work, strong institutions, and specialized teams that follow all stages of the process from the production of raw materials to circulation, along with precise oversight and technical handling of any shortcomings, to ensure sustainable benefits.

He concluded that all these factors combined will contribute to strengthening monetary and economic stability and facilitating the restoration of confidence in the Syrian pound. (QNA)