After years of depreciation, Syria’s highest banknote—SYP 5,000—is now worth less than 50 cents. Printing larger-denomination notes (SYP 10,000, 20,000, even 50,000) may be a more appropriate option than full redenomination (removing zeros and reprinting the entire series).
Why?
– Printing higher denominations lowers the costs of transactions, storage, and transportation of money, thereby retaining the main benefits of redenomination.
– Removing Assad’s portraits could still be done for the relevant notes (1,000 and 2,000), sending a powerful signal of political transition and retaining the benefits of redenomination.
– Introducing higher denominations is cheaper than printing the entire series.
– Reduces the confusion resulting from removing zeros
– Avoids the need for a public awareness campaign and complex rollout planning
Our article explores what Syria can learn from other post-authoritarian countries, and what it will take to rebuild confidence in the pound.