Iyad Bilal, the Director of the Treasury Directorate at the Central Bank of Syria, addressed the nation’s current inflationary challenges and discussed the potential measures of removing zeros or introducing a new monetary denomination.
Bilal highlighted that the decision to delete zeros or introduce a new currency denomination typically arises during widespread inflation and daily devaluation of the national currency, as reported by local radio station Al-Madina FM.
He emphasized that such actions are complex and not to be taken lightly, citing examples of other countries that have resorted to similar measures during prolonged periods of inflation. He cautioned against hasty decisions, warning that ill-considered actions could exacerbate economic instability.
While acknowledging inflation in Syria, Bilal indicated that it hasn’t reached alarming levels. He stated that the idea of removing zeros from the currency is not currently under consideration at the Central Bank, and any decision in this regard would be formally announced.
Regarding the introduction of a new monetary denomination, he clarified that the Central Bank is exploring all options but confirmed there are no immediate plans or studies underway.
Bilal noted that the largest banknote denomination in Syria is 5,000 SYP, which he deemed adequate for conducting transactions and transfers.
In February, economist George Khozam suggested the removal of one zero and the issuance of new denominations valued at one-tenth of the current currency to combat economic inflation. Khozam argued that removing just one zero wouldn’t necessarily require withdrawing all existing banknotes from circulation and printing new currency, as Syria hasn’t yet experienced hyperinflation necessitating the removal of multiple zeros. He suggested that such a move would facilitate smoother transactions in the market.
Observer’s Note: The dollar traded at 14,000 SYP on the black market on Wednesday, according to SP Today.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
