Damascus, SANA- Experts believe that removing two zeros from the Syrian currency could have positive effects, contributing to strengthening confidence in the National pound and facilitating financial and accounting transactions.
Dr. Ibrahim Qushji, an Expert in Economy and banking told SANA that the process of removing two zeros from the currency “will not have any impact on its real value, but it could psychologically strengthen citizens’ confidence” in the national currency, especially if accompanied by systematic economic and media reforms, as occurred in Turkey and Brazil.
Qushji pointed to the importance of re-pricing goods and services and updating salary schedules to ensure the purchasing power of vulnerable groups is protected.
He also highlighted the need to enact laws that guarantee the preservation of the value of debts and securities after the change, and to regulate the relationship between product prices, the new Pound.
The expert also, called for setting the dollar exchange rate in the official and parallel markets to ensure the stability of the monetary market.
For his part, Dr. Yasser Al-Mashaal, Professor of Financial and Monetary Economics at the Faculty of Economics at Damascus University, said: “Removing zeros is only a tool that can support economic reform if used as part of an integrated program. Otherwise, it will become just another number in the crisis log if used alone.”
“Accounting processes will also become simpler in banks and companies, easing pressure on automated payment systems and accounting software” he added.
Al-Mashaal pointed out that in the case of the Syrian economy which faces enormous challenges, including accelerating inflation, weak domestic production, removing zeros alone insufficient to address the crisis.
He emphasized that the success of any currency restructuring process in Syria requires an “integrated economic framework that includes monetary policy reform, controlling the size of the money supply, linking monetary issuance to actual production growth, and strengthening productive sectors”.
He also believed that currency restructuring process “requires restoring confidence in banks by protecting deposits and adopting transparent policies that encourage citizens to return their money to the banking system”.
Nawal/ Abdul
