Is replacing the Syrian lira considered an economic necessity?

Al -Jazeera stated that after years of conflict and economic division in Syria, the question about the future of the local currency and the possibility of replacing it is strongly proposed in governmental and popular circles, especially with the increasing talk about the phase after the fall of the Bashar al -Assad regime.

In light of the deterioration of the lira and the emergence of alternative currencies in some areas, attention is directed to the options for replacing the currency, and the consequent economic and political challenges that the Syrian administration may face.

The advocates of replace the currency are attributed to this for several reasons, the most prominent of which are:

– The presence of money in the lira inside and outside the country.
The stealing of state funds by officials and accused of crimes.
Currency deterioration and low value of the lira.
– The presence of pictures of the previous regime symbols on the currency, such as the lion’s family.

Syrian economist Osama Qadi affirmed that replacing the paper currency is “urgent or later”, noting that this first requires knowledge of the true value of the lira in the market within an active investment environment through which billions of dollars enter, which is reflected in moving the wheel of the economy and activating the mechanisms of supply and demand clearly.

A judge said that the central bank needs this stable economic scene to determine the realistic price of the lira, which drives it to wait to take a step of printing a new currency, especially in light of the challenges related to high print costs and advanced technologies needed to prevent forgery.

He added that he submitted an official proposal to the “central” and the Ministry of Economy to print a new category of 5 thousand pounds, as an ambulance measure aimed at stopping forgery, reducing speculation, and combating money laundering, and indicating that this step would lose the smuggled currencies out of the country.

A judge pointed out that the replacement process will allow the central bank to follow the sources of money and know if their owners are covering money laundering operations or they have real economic activities.

With regard to printing financing, a judge revealed that there are countries that offered costs in 3 batches, suggesting that one of the sisterly Arab countries may adopt funding the first batch, but the proposal has not been officially approved yet.

On the other hand, others warn that rushing to take the step before achieving economic and political stability makes the step in vain.

Replacing the Syrian currency requires basic conditions that must be fulfilled in the long run, according to economic analyst Firas Shaabu, pointing to the most prominent of them:

Achieving sustainable political stability.
– Making comprehensive economic reforms.
– Full transparency in the Department of Financial Affairs.

He stressed that replacing the currency must take place only after restoring confidence in it, pointing out that any formal change will not lead to a real improvement in the value of the currency or in the economic situation in general.

According to Shaabu, the cost of printing a new currency is greater than the value of the lira itself, which is a major challenge in itself for the government.

He pointed out that any economic reform plan must include restructuring the banking sectors, while working to reduce the chronic inflation that the Syrian economy suffers from, as well as finding an appropriate environment to attract investments. (Al -Jazeera)