Syria to start currency swap on January 1, central bank governor says

DUBAI: Syria will start swapping old banknotes for new ones from January 1, 2026, Central Bank Governor Abdelkader Husrieh said on Thursday, under a plan to replace Assad-era notes to try to strengthen the currency’s value.

Syria’s new government, led by Syrian President Ahmed al-Sharaa, is seeking to rebuild state institutions and revive the economy after more than a decade of war, sanctions and financial isolation that left the local currency severely weakened.

“The central bank has been given authority to decide the deadline for the swap and its locations,” Husrieh said, adding the bank would issue instructions.

Sources familiar with the matter told Reuters in August that the country will issue new banknotes, removing two zeros from its currency to try to restore public confidence in the severely devalued pound.

Some bankers have voiced fears the new currency could drive up inflation and further erode the purchasing power of Syrians reeling from high prices, but Husrieh said the operation will take place through a smooth and orderly swap.

He added that a press conference will be held on December 27 to “explain all the details of the replacement process and deadlines”.

Assad fled Syria in December 2024 for Russia after rebels seized Damascus following an eight-day blitz through the country, ending six decades of his family’s autocratic rule, more than 13 years after an uprising had spiralled into civil war.

Syria marked earlier this month the first anniversary of the overthrow of Bashar al-Assad with jubilant celebrations in major cities.