Wasim al-Adawi | Mohammed Jaffal | Nour Kassem

On the morning of January 1, 2026, Syrians were not simply exchanging banknotes. They were entering the country’s largest monetary experiment in decades, a process that passed through several stages before beginning a five-year phase for withdrawing the old currency.

In just seven months, Syria went from circulating 14 billion old banknotes to announcing that about 95% of this cash stock had been replaced as of August 2, according to the Central Bank of Syria. The process was accompanied by successive decisions, long queues, liquidity crises, and confusion in markets before the old pound legally ceased to be legal tender on July 31.

According to statements by the Central Bank, 2.1 trillion old Syrian pounds remained in Syrian markets, equivalent to fewer than 650 million banknotes still held by citizens.

The replacement process reshaped citizens’ relationship with cash, banks, and confidence in the market itself. According to experts, it included both successes and setbacks. Billions of banknotes were brought into the banking system without triggering an inflationary shock, while the exchange market remained relatively stable, but the process also exposed shortcomings such as too few exchange centers and delays in confronting merchants’ refusal to accept the old currency.

The process also raised numerous questions about how the experience should be assessed, its current and future impact, public satisfaction, and the elements behind its successes or failures. Enab Baladi put these questions to several parties, including citizens, experts, and the Central Bank of Syria, which had not provided an official response by the time this report was published.

Implementation Mechanisms, Setbacks, and Successes

Presidential Decree Changes Currency Rules

On December 24, 2025, Syrian President Ahmed al-Sharaa issued Decree No. 293 of 2025 concerning the launch of the new Syrian currency.

The decree stipulated the replacement of old banknotes and their withdrawal from circulation beginning January 1, 2026, within deadlines set by the Central Bank of Syria.

On December 29, 2025, the Central Bank issued an executive decision implementing the decree and establishing the initial rules for replacing the currency.

Just two days later, on December 31, another decision specified the institutions authorized to carry out the exchange. These included public and private banks and exchange and money transfer companies supervised by the Central Bank. The decision stressed that the process would be entirely free, with no fees or commissions.

The objective was clear, to channel as much cash held outside the banking system as possible into official channels.

Several weeks after the process began, Central Bank Governor Abdulkader Husrieh disclosed a notable figure. He said about 14 billion old banknotes had been in circulation, representing a volume he had previously stated at a Central Bank press conference announcing the executive instructions was worth 41 trillion old Syrian pounds. He later said the cash stock amounted to 42 trillion pounds.

Several experts and economic researchers interviewed by Enab Baladi at the time expressed reservations about that estimate. Among them was Syrian academic and banking and economics expert Ibrahim Koshaji, who said there was a very strong possibility that the actual old money supply exceeded 42 to 43 trillion pounds and could amount to between 50 and 56 trillion old Syrian pounds.

According to Koshaji, the figure did not include cash outside Syria’s borders, whether in neighboring countries or in areas associated with smuggling and informal trade. That money cannot be measured through the Central Bank’s issuance records, he said, but it affects the overall size of the money supply.

By the end of February, however, the Central Bank announced that four billion banknotes had been replaced, about 35% of the cash stock in only eight weeks. Although the figure appeared high, it revealed a larger problem, more than two-thirds of the liquidity was still outside the banking system.

First Crisis, Remote Provinces

As the currency replacement progressed, the geographical disparity became increasingly apparent.

Access to old currency replacement centers was relatively easier in Damascus, Aleppo, and Latakia. Residents of Deir Ezzor (eastern Syria), Raqqa (northeastern Syria), al-Hasakah (northeastern Syria), parts of Suwayda (southern Syria), and rural Idlib (northwestern Syria), however, faced hours of waiting because of the limited number of exchange points and the long distances involved.

Repeated complaints emerged about overcrowded branches, delays in salary payments, and elderly people being forced to stand in queues for hours.

On February 17, the Central Bank issued a decision expanding the exchange to include smaller denominations of 500, 200, 100, and 50 pounds from all old issues, provided that at least 100 banknotes of the same denomination were submitted for exchange.

Only days later, the Central Bank implicitly acknowledged that its original timetable was no longer realistic. On February 22, it issued a decision extending the deadline by 60 days beginning April 1, after it became clear that billions of banknotes remained outside banks.

An Unexpected Effect, Liquidity Disappears From Markets

During March and April, markets began experiencing a different phenomenon. Prices were not rising because of an injection of new cash, but liquidity was becoming scarce.

Traders complained that it was difficult to obtain new denominations, while citizens struggled to access cash. Prices also began to be rounded up or down after two zeros were removed from the currency, triggering disputes in markets and buses amid near-total silence from the Central Bank.

Economically, withdrawing a large share of the money supply reduced liquidity in circulation. This temporarily helped ease pressure on the dollar market but created a daily crisis for buying and selling.

On May 30, the Central Bank issued another decision extending the replacement process for an additional 30 days, with the new period beginning June 1. During the same period, Husrieh announced that 63% of the money supply had been replaced.

That meant about one-third of the old cash remained outside official circulation despite five months having passed.

The Biggest Mistake, Markets Move Ahead of the Central Bank

One of the most prominent criticisms directed at the Central Bank emerged while the old currency was still legally valid, when some merchants and public transport drivers began refusing it before its legal tender status expired.

The result was a situation in which officials said the currency remained valid while the market behaved as if it had already expired.

In Damascus, Aleppo, Homs, and Latakia, Enab Baladi recorded dozens of complaints from citizens about some shops refusing old banknotes. Clear messages from the Central Bank to restore discipline in the market came late. At the time, a statement simply affirming that the old currency remained legal tender would have been sufficient to require businesses and transportation operators to accept it.

On June 29, the Central Bank issued a decision that finally settled the matter, stipulating that July 30, 2026, would be the last day for exchanging the currency and that on July 31 the old currency would completely lose its legal tender status.

For the first time, official language shifted from “replacement” to “final withdrawal.”

Circulation Ends on July 31

When the deadline expired, old banknotes became invalid for any financial transaction. The Central Bank did not close the door entirely, however, announcing a new five-year phase during which applications to withdraw old currency would be accepted exclusively at the Central Bank of Syria in Damascus, subject to several key conditions:

• A minimum of 100 banknotes of the same denomination.
•  The value would be transferred to a bank account or Sham Cash in the new Syrian pound.
•  No fees, commissions, or taxes would be charged.

Only two days after the withdrawal phase began, the Central Bank announced another step. It reopened currency replacement through all public and private banks and post office branches in the provinces for one week, from August 2 through August 6, before once again restricting withdrawals to Damascus.

Where Did the Central Bank Succeed and Where Did It Falter?

Syrian economic and banking expert Mohammad Taysir al-Faqih told Enab Baladi that four main areas of success could be identified:

• Carrying out a large-scale operation without imposing fees on citizens.
• Bringing billions of banknotes into the banking system.
•  Avoiding a direct inflationary shock as a result of the replacement.
• Achieving relative stability in the exchange market compared with initial fears.

At the same time, the experience exposed clear shortcomings:

• Too few replacement centers in the early stages compared with the scale of demand.
•  Weak public communication by the Central Bank with citizens and markets during some sensitive stages.
• Delays in confronting the refusal of old currency in markets.
• An abrupt shift from expanding exchange points to later restricting withdrawals to Damascus, raising concerns among residents of distant provinces.

Between the technical success of replacing most of the money supply and difficulties in managing the details of implementation, the Syrian pound replacement became one of Syria’s most debated monetary policies of 2026. It changed more than the appearance of banknotes, reshaping citizens’ relationship with cash, banks, and confidence in the market itself.

Syrians’ Losses Worsen in Markets

 Shortage of Small Denominations and Multiple Currencies

Losing a small portion of the change due after buying an item or paying a transport fare may seem insignificant, but when repeated every day it becomes an additional burden on people with limited incomes.

About a month before the old currency ceased to be legal tender, Enab Baladi observed a shortage of liquidity available for replacement in Damascus’s currency exchange market. Many banks limited exchanges to only 500,000 Syrian pounds, while a small number allowed as much as five million pounds to be exchanged per day.

Testimonies collected by Enab Baladi from several Syrian provinces showed how shortages of small denominations combined with exchange-rate disorder, the circulation of multiple currencies, and exploitation of people’s need to replace old banknotes.

Small Denominations Vanish From Markets

After the decision ending the old Syrian currency’s legal tender status took effect at the end of July, problems involving circulation of the new currency emerged, particularly the limited availability of small denominations, including:

•  The 10-pound note, which replaced the old 1,000-pound denomination.
•  The five-pound note, which replaced the old 500-pound denomination.
•  The absence of a 20-pound denomination to replace the old 2,000-pound note bearing the image of ousted President Bashar al-Assad.

A survey conducted by Enab Baladi through its correspondents in several Syrian provinces found that most areas face similar problems because of a shortage of small change. Markets in rural Aleppo, Idlib, and al-Hasakah face different challenges associated with the multiple currencies in circulation and differing exchange rates between them.

Consumers are forced to lose part of their money in everyday transactions because small denominations are unavailable, whether when shopping in stores or using public transportation.

Enab Baladi’s correspondent in Suwayda reported that the shortage of small change led some sellers to give customers “a packet of coffee, a piece of gum, or a lighter” instead of the remaining change, and sometimes to slightly increase the weight of the purchased item.

The same situation occurs in Syria’s coastal and central provinces, Damascus, and its countryside. Enab Baladi correspondents reported that consumers lose amounts that appear small in each purchase but become cumulative losses when repeated.

The problem is particularly visible on public transportation. Shared minibus drivers may sometimes have small denominations, while other transactions end with the driver saying “Sorry,” without the passenger receiving the rest of the fare.

Abdul Razzaq Habza, secretary of the Consumer Protection Association, told Enab Baladi that the negative effect of the replacement process became visible in prices, particularly as the exchange deadline approached. Citizens tried to dispose of old 500, 1,000, and 2,000-pound denominations by any means possible, contributing to higher prices during that period.

Multiple Currencies Confuse Idlib and Rural Aleppo Markets

In rural Aleppo and Idlib, the problem extends beyond the absence of small denominations to the circulation of multiple currencies, including the Turkish lira, US dollar, and euro, along with differing exchange rates and opportunities for exploitation.

Enab Baladi’s correspondent in rural Aleppo reported that the Turkish lira is the most widely used currency, while some sellers refuse to deal in Syrian pounds or accept them at a low exchange rate. The correspondent cited the case of an elderly man known as “Abu Mahmoud,” who suffered a loss because he did not have Turkish lira.

When “Abu Mahmoud” needed to buy a bag of sugar priced at 280 Turkish lira, the seller asked him for an amount in the new Syrian currency equivalent to 380 Turkish lira.

In Idlib, people contacted by Enab Baladi said the use of multiple currencies creates confusion in buying and selling.

Habza, for his part, believes other currencies circulating in markets should be phased out and the Syrian pound used exclusively. He also called for sellers to be required to display the prices of food, electrical appliances, and other goods in the new local currency.

Al-Hasakah, Three Dollar Rates and Unofficial Exchange

In al-Hasakah province, Enab Baladi‘s correspondent reported that residents face limited circulation of the new currency while old banknotes and US dollars remain in use.

The situation has allowed some money changers to exploit the conversion difference between the old and new currencies. The province’s administrative and economic divisions are also reflected in multiple dollar exchange rates, with markets using three different rates depending on the denomination of Syrian currency involved.

For the old 2,000 and 5,000-pound denominations, the dollar traded at about 14,500 pounds for buying and 14,900 for selling.

For old 500 and 1,000-pound denominations, the rate was about 16,500 pounds for buying and 17,000 for selling. Against the new Syrian currency, the dollar traded at 127 pounds for buying, equivalent to 12,700 old pounds, and 132 pounds for selling, equivalent to 13,200 old pounds.

Unofficial channels for replacing old currency also emerged, charging a difference that could cause people to lose as much as 30% of its value.

Habza said that about two weeks before the exchange deadline, a phenomenon he described as “usury” emerged, as some citizens were forced to surrender part of their savings in old currency because they were unable to exchange it through official channels.

Vendors Lose a Quarter of Their Money’s Value

Mohammad al-Hallaq, former vice president of the Damascus Chamber of Commerce, told Enab Baladi that merchants were not significantly affected during the currency replacement phase, but are currently affected by consumers’ weak purchasing power and rising household expenses, particularly during seasons when spending increases, such as:

•  The start of the school year.
•  Holidays.
•  The season for preparing household food preserves.

 Solutions Proposed by Citizens Interviewed by Enab Baladi

•  Supply sufficient quantities of small denominations.
•  Use the new Syrian pound for pricing and transactions.
•  Regulate unofficial currency exchange.
•  Gradually expand electronic payments.
•  Begin with sectors that handle large volumes of cash, such as fuel stations.
•  Strengthen confidence in the banking sector and payment systems.
•  Make small change and electronic payment options more widely available.

Habza proposed that the relevant authorities provide and inject sufficient quantities of small denominations into circulation, because their absence affects the income of the poorest groups and causes repeated disputes between consumers on one side and sellers and shared minibus drivers on the other.

He believes the 25-pound denomination is impractical and does not solve the shortage of small change because of its limited usefulness in daily transactions. He said it also created another problem, with citizens and drivers forced to reuse the old 500-pound banknote alongside the new 25-pound note.

Mohammad al-Hallaq said expanding electronic payments could make transactions easier, whether for daily purchases or in clothing stores, restaurants, and other businesses, but increasing their use requires greater confidence in the banking sector and payment systems.

He pointed to the possibility of starting with the most urgent sectors, such as fuel stations. Giving station owners new currency in physical banknotes carries risks, he said, because of the banknotes’ vulnerability and the possibility they could be damaged and lose their value.

“Activating electronic payments is not complicated, and it can begin with the most urgent sectors, such as fuel stations.”

Mohammad al-Hallaq

Former vice president of the Damascus Chamber of Commerce

Currency replacement at the Central Bank of Syria branch in Raqqa, August 6, 2026. (Enab Baladi/Ahmad al-Hamdi)

 What Changed in Syrians’ Lives After the Currency Swap?

Replacing the old Syrian currency with the new pound did not change the actual value of the money Syrians owned. The process removed two zeros, meaning one new pound equals 100 pounds from the old issue. The transition between the two issues nevertheless imposed broad changes on daily life, from how salaries and prices are calculated to commercial transactions, transport fares, and purchases of basic necessities.

Over recent months, Enab Baladi documented various forms of confusion, from shops refusing some old denominations even while they remained valid to differences in the dollar exchange rate depending on the currency held by the customer. There were also difficulties linked to shortages of exchange centers and small denominations.

A Smaller Salary on Paper, the Same Expenses

For employees and people on fixed incomes, removing two zeros did not fundamentally change the value of their income. The number of digits used for salaries fell, as did the number of digits in commodity prices, while the relationship between income and living costs remained the decisive factor.

Mohammad al-Ali, a government employee, said his salary is now calculated in the new currency, but he needed time to become accustomed to the new figures.

“The problem was not the number of zeros, but the prices we pay every day,” he said, explaining that people do not measure their salaries by the number of banknotes they receive, but by what those salaries can buy.

The same picture appears in Suwayda from the perspective of a day laborer. Uday A., who installs stone, said his daily wage had been 100,000 old pounds. The clearest change for him was the form of the money he carried, moving from a large number of banknotes to two new 500-pound notes, but he does not feel that this has changed his daily expenses.

Bassam Nasser, a retiree from Hama (central Syria), said the transition became easier over time, with the main difficulty occurring at the beginning when people were adapting to the removal of two zeros.

“The only change is the quantity,” he said. An amount that once required considerable space in a wallet can now fit easily into a small one. He recalled that one million old pounds required substantial space, while its equivalent in the new currency is easier to carry and use.

“I now receive two 500-pound notes. I feel as though I have been cheated. I used to earn 20 notes of 5,000, now it is only two 500-pound notes.”

Uday A.

Day laborer in Suwayda

Small Change Becomes a Daily Burden

The effects of moving to the new currency were not limited to difficulties reading the new figures. Another problem emerged in daily transactions because of the shortage of small denominations.

Enab Baladi observed shopkeepers and transport operators in different areas giving customers small goods instead of cash change because some denominations were unavailable, particularly when prices ended in figures that could not be matched by the banknotes in circulation.

In Raqqa, Abdullah Mohammad al-Amu, a public transport driver, said drivers try to work around the problem in various ways. “We give the passenger a biscuit, gum, or something similar to compensate for the shortage of small change.”

Abdullah added that the main problem is returning change on fares, because a driver cannot repeatedly absorb small differences, especially when the transaction occurs dozens of times each day.

He said part of a driver’s income can be lost every day because small denominations are unavailable, at a time when the cost of operating a bus is already rising.

As a result, differences that appear small in a single transaction have become an accumulated burden on both businesses and consumers.

Enab Baladi also observed that some merchants were forced to round bills upward because of the lack of small denominations, adding extra costs for consumers when purchases are repeated.

“In some cases, small change has turned into gum, chocolate, or low-cost goods instead of cash because small denominations are unavailable.”

Abdullah al-Amu

Public transport driver in Raqqa

New Syrian pound circulating in markets in Daraa (southern Syria), August 27, 2026. (Enab Baladi/Mahjoub al-Hashish)

More Than a Change in Denominations

In al-Hasakah, the problem became more complicated because of shortages of the new currency and limited replacement channels, affecting both markets and exchange rates.

Abdullah Suleiman, a retired employee from al-Hasakah, said the pension payments he receives through the Sham Cash application made the shortage of new currency in the province particularly apparent. The problem was not receiving the pension itself, but being able to convert it into new cash and use it in the market.

Abdullah added that the replacement process itself faced difficulties because of overcrowding and the limited number of centers. Citizens were forced to wait for long periods, while others became increasingly concerned that they would not be able to replace their money before the deadline.

Hasakah was not alone in facing these difficulties. Enab Baladi observed queues continuing in the eastern provinces even after the deadline was extended, along with complaints about the limited number of centers, shortages of the new currency, and different exchange rates between the two issues.

The Dollar Enters Daily Transactions

In Qamishli, the shortage of new currency also affected the real estate market. Hamo Ibrahim, the owner of a real estate office in the city, said the scarcity of new currency means residents rely primarily on the dollar for sales and rentals. Using dollars in contracts is not new, he said, but has increased over the years as the Syrian pound’s exchange rate fluctuated.

The transition to the new currency added another layer of confusion, with some customers asking for contract values to be written in the old currency even when payment is made in the new currency.

Hamo believes the reason is partly psychological, with the number feeling smaller after two zeros were removed even though the actual value did not change. Others prefer to pay in the new currency despite its limited availability.

Elderly Syrians Face a Test of New Numbers

Some elderly people faced greater difficulty switching from numbers they had used for decades.

In Markada, in the rural area between Hasakah and Deir Ezzor, 70-year-old Hamad al-Ali said he frequently made calculation mistakes when the new currency first began circulating and later preferred to avoid using it whenever possible.

Hamad relies on his grandson Suleiman for transactions that require calculating prices and converting between the two currencies. “Until now, I have not understood the differences and the changing numbers, and I cannot calculate prices properly,” he said.

His grandson Suleiman believes the problem is not confined to older people, explaining that young people themselves sometimes struggle, particularly while the old currency, new currency, and dollar all continue to appear in markets.

He said the shortage of small denominations makes the situation worse, because a seller or buyer may have to use part of the amount in old currency to settle an account. This overlap, he said, is “exhausting for us, so imagine what it is like for the elderly.”

In Deir Ezzor, homemaker Joud Huwayj views the process differently. She does not see the removal of two zeros as a fundamental problem, but does not believe it has improved a family’s ability to manage its expenses. Prices remain high, she said, while the absence of stable prices makes managing a household budget complicated.

“The transition period may impose additional burdens on some groups, particularly because of difficulties using the new denominations or the shortage of small denominations, as well as the possibility that some people may exploit citizens’ unfamiliarity with conversion rates to raise the prices of certain goods and services.”

Mazen Abdullah

Economist

As the Central Bank focuses on changing the appearance of banknotes, Syrians on the street are painfully aware that their crisis is not in the form of the currency, but in its value. Caught between new figures and rising prices, they are less concerned with the design of the banknote than with whether it can buy a bundle of bread. They are looking to the government to revive the Syrian economy, reduce inflation, and improve the purchasing power of the new Syrian pound.