Syria Endures 14 Years of Civil War Before Rebel Victory Last Year
Currency Value Plummets... Announces Reform Plan to Remove Two Zeros
Interim President Also Seeks to Improve Relations with the United States
Syria, which has experienced severe inflation due to a 14-year civil war, announced a currency reform plan to remove two zeros from its currency unit in order to address the issue of currency value. On December 28 (local time), Yonhap News quoted Syria's state-run SANA news agency as reporting, "The Central Bank of Syria will implement a redenomination, removing two zeros from the current currency unit starting next year." As a result, the current face value of 100 Syrian pounds will become 1 Syrian pound.
Syria, which has experienced severe inflation due to a 14-year civil war, announced a currency reform plan to remove two zeros from its currency unit to address the currency value issue. Photo by AP Yonhap News
The Central Bank of Syria plans to carry out the currency exchange process for 90 days starting January 1 next year, during which both the old and new notes will circulate together. Central Bank Governor Abdulqader Husriye stated, "This measure is simply replacing the existing currency with new notes without increasing or decreasing the money supply," and added, "The issuance of the new currency will serve as an important stepping stone for the recovery of the national economy."
This currency reform is a response to the dramatic decline in the value of Syria's currency caused by the 14-year-long civil war. Just before the outbreak of the civil war in 2011, the Syrian exchange rate was around 50 pounds to the US dollar, but since then, the value of the currency has plummeted, at one point surpassing 10,000 pounds to the dollar.
Some interpret this reform as part of the interim government's plan to erase the legacy of former President Bashar al-Assad and his father, Hafez al-Assad, who ruled Syria for decades. Until the rebel forces led by current interim President Ahmed Alshara won the civil war last December, the Assads had maintained an iron-fisted rule over Syria for decades. Their faces are still depicted on the 2,000 Syrian pound and 1,000 Syrian pound banknotes, respectively.
However, instability persists as various armed groups rooted throughout the country continue to vie for power, and sectarian conflicts remain heightened after 14 years of civil war. On the day the currency reform plan was announced, masked assailants opened fire during a protest in Latakia, western Syria. Security forces under the Ministry of Interior intervened to quell the unrest but came under attack themselves, and some civilians were also injured by gunfire. According to TASS news agency, three people were killed and 55 injured in total. In addition, on the 26th, a bombing at a mosque in Homs reportedly killed eight people and injured eighteen.
US President Donald Trump shakes hands with Ahmed Alshara, Interim President of Syria, at the White House on the 10th of last month (local time). Photo by AP
Meanwhile, President Alshara has been working to improve relations with neighboring countries and the West since taking office. Having a history of involvement with the Islamist extremist group Al-Qaeda, he made an unusual visit to the United States last month for his first summit with President Donald Trump. At the time, President Trump said, "He has had a very difficult past," but added, "Without a difficult past, there would be no opportunity."
On December 8, marking the first anniversary of the collapse of the dictatorship, President Alshara declared, "We will rebuild Syria in a manner befitting both the present and the past," and emphasized, "No matter how great and powerful they are, no obstacle can stop us." He also stated, "We will rebuild a strong Syria from north to south, from east to west," and stressed, "We will help the oppressed and establish justice."
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