Assad Regime Puts New Banknotes in Circulation

Hussein al-Ammash, a Syrian economic expert, said that the government of the Assad regime put new banknotes in circulation on Sunday, only to be dispersed early next month. “This move will worsen the economic crisis in Syria and will increase inflation, estimated at 250% to 300%. The Assad regime does not have enough gold or hard currency to back up the new banknotes, which are not worth the paper they are printed on. In normal conditions, new banknotes can be printed to replace the worn-out ones. However, in the Syrian case this will only to serve to aggravate the economic crisis, especially with the lack of confidence in the Syrian economy and the lack of reserves of the foreign currency, added to this the cessation of production, exports and imports. The financial aid the Assad regime has been receiving from its Iraqi and Iranian allies is used exclusively to finance its war efforts and not to revive the economy. The last source of hard currency is the remittances transferred by the Syrian expatriates. The regime’s printing of new banknotes will engage it heavily in deficit financing, and is aimed at financing the pay raises and bounties to the regime’s militias. This move will result in devaluation of the Syrian pound and increase the price of basic goods.” (Source: Syrian Coalition)