Syria is set to print a new currency in the United Arab Emirates and Germany, stepping away from its previous collaboration with Russia, which initially handled the project.
According to Reuters, citing three informed sources, this decision comes in light of Damascus enhancing ties with Arab nations and the recent easing of US sanctions, providing Syria with new opportunities.
Removal of Assad’s Image from the New Currency
Reuters further reports that Syrian officials began investigating currency printing options in Germany and the UAE earlier this year, with efforts accelerating after the EU relaxed sanctions against Damascus in February.
Several organizations, including the state-backed Bundesdruckerei and the private firm Giesecke+Devrient in Germany, have shown interest in producing the new Syrian currency, although these companies have not yet confirmed their involvement. In the UAE, Syrian authorities are reportedly in advanced discussions with Oumolat company for a currency printing agreement, with the governor of the central bank and the finance minister having visited during a recent trip to the UAE.
In the redesign of the new currency, Syria plans to eliminate the image of former leader Bashar al-Assad from some notes currently in circulation.
Economic Implications and Relations with Russia
Syria’s new leadership is moving rapidly to revive an economy that has been in crisis for 13 years due to war. The situation has worsened due to a shortage of banknotes, compounded by banks restricting access to savings for businesses and depositors, adding pressure to an already strained economy facing competition from low-cost imports.
During the decade-long civil conflict, one of Assad’s main supporters, Russia, was responsible for printing Syria’s currency after EU sanctions terminated a contract with a European firm.
The new administration in Damascus has kept its ties with Moscow, even after Assad relocated to Russia last December, receiving multiple shipments of cash, fuel, and grain recently, while Russia aims to sustain its two military bases in the coastal region of Syria.
This development raises concerns among European nations striving to curb Russia’s influence amidst the ongoing war in Ukraine.
As of Friday, May 16, one Syrian pound is valued at 0.00007 euros, and 1 euro is equal to 14.553 Syrian pounds.
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