The Syrian Finance Minister confirms the stability of the lira and the introduction of the new currency
Syrian Finance Minister Mohammed Yasser Barnieh expressed his strong optimism about the Syrian pound's trajectory in the coming period, asserting that the national currency is steadily moving towards stability. This statement comes within the framework of a comprehensive package of economic, financial, and monetary reforms that the Syrian government is implementing to improve living conditions and regulate markets.
In a message of reassurance to citizens, Barnieh urged them not to worry about the future of the currency, noting that current and future indicators are promising. He added, "The national currency will remain a source of confidence and pride for all Syrians, representing a symbol of the country's identity, history, and civilization, and reflecting the nature of the Syrian economy, particularly its agricultural character." The minister emphasized that strengthening confidence in the Syrian pound is the cornerstone of the desired economic reform process.
A new phase and structural reforms
These statements coincide with the unveiling of the new Syrian currency, with Syrian President Ahmed al-Sharaa and the Governor of the Central Bank of Syria, Abdul Qader al-Hasriya, announcing the details of this strategic move. During the launch ceremony for the new lira, the Syrian president clarified a crucial point regarding economic concepts, stating: "There are many concepts that need clarification during the currency change process. First, simply replacing the old currency with the new one does not, in itself, improve the economy. Rather, it is a measure to facilitate currency transactions and simplify accounting.".
From an economic standpoint, the "removal of zeros" procedure (Redenomination) is a step that countries usually resort to after periods of inflation, with the aim of facilitating commercial and banking accounting operations, reducing the accounting burdens on companies and individuals, in addition to its psychological effect in enhancing confidence in the local currency.
Integration of fiscal and monetary policies
In a related context, the Minister of Finance emphasized the utmost importance the government places on coordination between fiscal policies (managed by the Ministry) and monetary policies (managed by the Central Bank). He affirmed the existence of continuous and ongoing communication between the two entities, declaring the Ministry's full support for the independence of the Central Bank of Syria.
Experts pointed out that central bank independence is a cornerstone of any economic system striving for stability, as it allows the bank to make monetary decisions free from direct financial pressures, thus contributing to curbing inflation and preserving the currency's value. Barnieh concluded by emphasizing that this institutional coordination contributes to strengthening the national economy and building confidence in the local currency in the face of challenges.
President al-Sharaa considered the currency change to be “a sign of the end of a previous, unlamented phase, and the beginning of a new phase that the Syrian people and the peoples of the region who are hopeful about the modern Syrian reality aspire to,” which indicates political and economic dimensions that go beyond a mere formal monetary change.
