The Syrian pound: Will “removing zeros” or a comprehensive economic restructuring save it?
The Syrian pound: Will “removing zeros” or a comprehensive economic restructuring save it?
2025-10-13 06:45
Shafaq News – Damascus
A Syrian expert outlined ways to strengthen the Syrian pound on Monday, including reducing inflation and implementing comprehensive structural economic reform. He noted that deleting zeros and printing a new currency are merely “symbolic” measures and not solutions.
Ibrahim Nafi’ Qushji, a faculty member at the National Private University, told Shafaq News Agency, “The real solution goes beyond form and embraces substance and profound structural reform. Given the economic reality in Syria, deleting zeros faces significant challenges that await solutions.”
He added, “International experience indicates that currency reform is not a magic bullet. Removing zeros—despite its technical benefits—remains merely a cosmetic change that does not affect the currency’s true value or its purchasing power.”
He explained, “It’s true that the new currency has advanced security features to combat counterfeiting, but that won’t solve the fundamental problem of the Syrian pound’s more than 99% decline in value since the beginning of the crisis.”
He continued, “The dual pricing system using two currencies carries real risks. The root causes of the crisis remain: low productivity, a massive trade deficit, and an unstable economic environment.” He added, “Talk about boosting confidence in the Syrian pound ignores the fact that a financial revolution requires more than just new banknotes. It requires foreign currency reserves, a productive economy, and real political solutions.”
He pointed out that “removing zeros from the new currency has an important symbolic dimension, as it removes the images of the two former presidents, indicating a desire to separate the new phase from the legacy of the past. However, true success depends on learning from the experiences of others. Turkey succeeded in reforming its currency in 2005 because the change was part of a comprehensive economic reform package, while Zimbabwe and Venezuela failed because the changes were limited to form and not substance.”
He pointed out that “the currency reform plan, despite its technical importance, remains insufficient to save the Syrian pound. The real problem is not the number of zeros or the shape of the banknotes, but rather the fragile economic foundation and difficult political conditions.” He explained that “true success requires more than just printing new currency. It requires stimulating local investment to absorb the cash surplus, reducing the inflation rate, deep structural economic reform, and reintegrating Syria into the global economy. Then this step can transform from a mere cosmetic change into a real beginning for economic recovery.”
shafaq.com
