Immediately after this announcement, the Syrian pound recorded a slight decline against the US dollar, as the exchange rate of the pound against the dollar in Damascus recorded 2960 pounds.
The bank attributed the printing step to facilitating monetary transactions, reducing their costs and their contribution to facing the effects of inflation that occurred during the past years, in addition to reducing the intensity of dealing in banknotes, due to the high prices and the gradual disposal of damaged banknotes, especially since the wear and tear has increased recently.
According to the statement, the Central Bank of Syria found that the time has become appropriate, according to the current economic variables, to introduce the new cash category.This is not the first time that the system prints banknotes in one year and put them up in another year, as it did this when it printed 2,000 lira in 2015 and offered it in 2017, said Abdul Nasser Al-Jassim, a professor of business administration at the Turkish University of Mardin, told Al-Modon.
He added, “The bank provides logical justifications if it is not in the Syrian case today, as it cannot separate the introduction of a new paper class of currency on the market and change the supply and demand equation of money from the reality of prices, the purchasing power of cash, low income levels and the deteriorating economic situation in Syria.”
About the effects of this matter, he said: “Originally there is a clear state of mistrust between the people and the government, and therefore any government decision will be met with suspicion in the markets and the introduction of this category increases fears and carries with it a psychological effect, which will lead to the deterioration of the lira’s price in front of the other basket of currencies, especially The US dollar and a rise in prices due to financial and monetary instability. ”
A professor of business administration at Mardin State University described the monetary reality in Syria as “hyperinflation” as a result of the very sharp and successive price hikes. He said, “The sources of financing are drying up at the system. No one is lending to it anymore, so it is no longer able to finance the accumulated deficits in successive budgets. Today goes to print papers with no value and no balance, in addition to the lack of trust between him and even the men of his economy, so recently he started extorting businessmen and seizing.” On their money and the secret customs office launch attacks on merchants of Damascus and Aleppo. ”
It is worth noting that the new currency does not bear the image of the President of the Syrian regime, Bashar al-Assad, unlike the 2000 Syrian Pound currency, but rather bears a picture of a Syrian soldier saluting the flag, along with a mural from the Baal Shamin Temple in the ancient city of Palmyra.