Currency Redenomination as Cosmetic Reform in a Collapsed Economy: The Syrian Case

Syria’s decision to remove two zeros from its national currency starting in December 2025 is framed by authorities as a move to simplify financial transactions and restore confidence in the Syrian pound. However, this measure is largely symbolic and fails to address the deep structural collapse of the economy. The country has lost over 60 percent of its GDP since the onset of conflict, transforming from a relatively self-sufficient nation in agriculture and industry into one heavily dependent on imports for basic needs. This erosion of productive capacity has created a massive imbalance between supply and demand, fueling hyperinflation that cannot be resolved merely by altering the face value of banknotes.

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