Central Bank of Syria (CBS) Governor Abdelkader Al-Hosaria has confirmed plans to introduce new banknotes as a “historic milestone” and part of efforts to strengthen financial independence.

On August 22, Reuters reported Syria would remove two zeros from its currency in a bid to restore public confidence in the severely devalued pound, citing seven sources familiar with the matter and documents reviewed by the news agency.

The central banker said this week that shaving two zeros off of the Syrian pound (also known locally as the Syrian lira) would simplify daily commercial and accounting transactions - without having any negative impact on its real value.

Al-Hosaria said that introducing the "new lira" is a replacement process rather than an expansion of money supply, insisting that no additional liquidity will be injected into the economy.

According to Reuters, the Syrian unit has lost more than 99% of its value since war erupted in 2011, with the exchange rate now at around 10,000/USD compared to 50/USD before the conflict.

Speaking in an interview with Syrian state television on August 25, Al-Hosaria said that the new Syrian pound would “become a symbol of liberation and sovereignty.”

He noted that currency printing is a complex process requiring extensive technical and administrative preparations.

SANA reported earlier that new banknotes will be printed by reliable international sources and feature modern anti-counterfeiting technologies, which will contribute to enhancing confidence in the currency and protecting the rights of users.

To oversee the operation, the central bank has formed both strategic and operational committees to ensure the process is carried out smoothly.

The new banknotes, which will be issued under the name “new lira” for accounting clarity, are currently being printed in six different denominations.

He said a nationwide awareness campaign will be launched to inform citizens about the replacement process, with systems allowing people to pre-register their balances to avoid delays in cash withdrawals. “We are betting on the awareness of citizens and their trust in national institutions,” he added.

Alongside the currency reform, the central bank is continuing to develop Syria’s electronic payment systems to streamline transactions and improve financial sector efficiency. The governor highlighted the bank’s priorities as maintaining stability in the financial system, boosting depositor and investor confidence, and gradually lifting restrictions on cash withdrawals.

Al-Hosaria also confirmed that licensing new banks was a key step in stimulating investment and reviving economic activity. He underlined the central bank’s close supervision of commercial banks to ensure compliance with regulations, timely intervention in market disruptions, and efforts to stabilise the exchange rate while keeping inflation under control.

He added that the central bank was pursuing “open, global-minded visions” to integrate Syria’s financial system into the international economy, presenting what he called a “qualitative leap” in the history of Syrian banking.