Extension of the deadline for exchanging the Syrian pound | Everything you need to know

The Central Bank of Syria announced a new decision extending the period for exchanging old Syrian pound denominations by an additional thirty days, effective July 1st. This decision aims to provide citizens and financial institutions with more time to complete the ongoing currency replacement process in the country and ensure a smooth transition to the new banknotes without harming the interests of holders of the old currency.

In an official statement issued on Sunday, the bank explained that this second extension of its kind comes in the context of the good progress made in the replacement process so far, and called on all accredited financial institutions to continue to receive all denominations of the old currency from citizens and replace them with the new issues in accordance with the established mechanisms.

Dimensions of the decision in light of economic challenges

The process of updating the money supply in Syria comes at a time when the national economy is facing significant challenges stemming from years of conflict and economic sanctions, which have led to a decline in the value of the local currency and soaring inflation. In this context, the Central Bank aims, through the withdrawal of old and worn banknotes, to bolster confidence in the Syrian pound and combat counterfeiting operations targeting older denominations with less sophisticated security features. Furthermore, introducing new or updated banknotes will help facilitate daily transactions for citizens, which currently require large quantities of lower-denomination banknotes due to rising prices.

The impact of extending the deadline for replacing the Syrian pound on markets and citizens

The decision to extend the deadline is of paramount importance to citizens, especially those in remote areas or those who were unable to complete the exchange process during the previous period. This extension gives them an additional opportunity to surrender their old currency holdings without losing its value, reflecting the monetary authorities' commitment to protecting citizens' savings. In the markets, the decision contributes to maintaining the stability of monetary transactions, as the old and new currencies will continue to coexist until the end of the specified period, thus preventing any disruption to daily buying and selling operations.

The Central Bank of Syria had previously confirmed that the Syrian pound replacement was proceeding at an accelerated pace, exceeding expectations, with over 56% of the old currency in circulation replaced in recent months. The bank indicated that the daily volume of exchange transactions ranged between 12 and 13 billion Syrian pounds, reflecting widespread public response and confidence in the measures taken, and confirming the success of the process according to established standards.