Syria removes Assad family from banknotes in currency relaunch | DW News

Key Concepts

• Currency Reform: The introduction of a new Syrian pound to replace the old currency.
• Economic Fragmentation: The division of Syria’s economy along political and geographical lines.
• SDF (Syrian Democratic Forces): The Kurdish-led military group controlling northeastern Syria.
• Central Bank Coordination: The lack of a clear mechanism for coordination between the central bank in Damascus and local authorities in regions like Kamishi.
• Public Skepticism: Widespread doubt among Syrians regarding the effectiveness of the currency reform.

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Introduction of New Syrian Currency & Initial Rollout

On January 1st, Syria initiated the rollout of a new currency, the Syrian pound, aiming to restore public confidence in the severely devalued existing currency and symbolically distance itself from the Assad regime by removing associated imagery. The exchange rate is set at one new pound equivalent to 100 old pounds. However, the initial implementation is proving uneven across the country.

Regional Implementation – Kamishi & Northeast Syria

Journalist Baran Risol, reporting from Kamishi in northeastern Syria, details a slow and unclear implementation process in regions outside of Damascus’s direct control. As of the initial days of the rollout, the new banknotes are not readily available in northeast Syria. The exchange is currently limited to offices licensed by the central bank for a three-day period. Daily transactions continue to be conducted using the older currency. This limited availability and restricted exchange period contribute to uncertainty among the population.

Lack of Coordination & Economic Fragmentation

A significant issue highlighted by Risol is the absence of a clearly announced coordination mechanism between Damascus and local authorities in SDF-controlled areas, such as Kamishi, regarding the currency exchange. This lack of coordination fuels uncertainty about when and how the process will be implemented in the region. Risol emphasizes that this situation reinforces the existing reality of Syria’s fragmented economic and administrative landscape. An agreement signed on March 10th remains unresolved, offering no clarity on coordination efforts. This fragmentation is a key obstacle to a successful currency reform.

Public Perception & Skepticism

The currency reform is largely perceived as a symbolic gesture by Damascus rather than a genuine attempt at economic revitalization. Risol observes a “high level of caution and skepticism” among the Syrian population. People prioritize livelihood stability over the aesthetic changes to the currency. There is a lack of transparency regarding the size of the printed money supply and potential impacts on prices and incomes, further contributing to public distrust.

Potential for Instability & Regional Disparities

Risol warns of a real possibility that the currency swap could exacerbate instability if not implemented in a coordinated and transparent manner across all of Syria. A poorly planned rollout could lead to market disruption, regional disparities, and increased speculation, particularly in areas like northeast Syria. The journalist argues that such a scenario could deepen economic fragmentation and erode trust, ultimately failing to unify the country’s economy. He states, “any poorly planned step could further accrue untrust and deepen economic fragmentation rather than unifying that they couldn’t meet.”

Economic Considerations & Priorities

The report underscores that the priority for Syrian residents is economic stability and improved livelihoods, not simply a change in currency design. The success of the currency reform hinges on addressing fundamental economic issues and ensuring a fair and equitable implementation process across the entire country.

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Conclusion

The introduction of the new Syrian pound is a symbolically significant move, but its practical impact remains highly uncertain. The lack of coordination between Damascus and regional authorities, coupled with public skepticism and the potential for market disruption, pose significant challenges to the reform’s success. The key takeaway is that a coordinated, transparent, and inclusive approach is crucial to avoid exacerbating existing economic fragmentation and instability in Syria.