DAMASCUS, Syria: Syria is preparing a sweeping overhaul of its battered currency, with plans to issue new banknotes that drop two zeros from the Syrian pound in a bid to restore confidence after more than a decade of economic collapse and war.

Central Bank Governor Abdelkader Husrieh confirmed that the revaluation will be a core part of broader fiscal and monetary reforms. However, he said the timeline for introducing the new notes is still "under review."

The Syrian pound has lost more than 99 percent of its value since 2011, sliding from 50 to around 10,000 to the U.S. dollar. Families today carry bags of 5,000-pound bills—the largest existing denomination—to cover weekly groceries. The central bank says removing zeros will simplify transactions, ease liquidity strains, and strengthen monetary stability.

In mid-August, the bank informed lenders of its intention to revalue the currency, according to documents reviewed by Reuters. Five commercial bankers and two other sources familiar with the matter said officials confirmed that two zeros would be removed. Meetings were chaired by Deputy Governor Mukhlis al-Nazer, they added.

Bankers also said Syria struck a deal with Russia's state-owned Goznak, which printed Syrian currency in the past, to produce the new notes. The agreement was finalized during a senior delegation's trip to Moscow in July.

The political symbolism is also clear: current notes feature images of Bashar al-Assad and his father, Hafez, both toppled from power. Replacing those bills underscores Syria's attempt to signal a break from decades of Assad rule.

Officials are planning a public information campaign ahead of the formal launch on December 8, one year after Assad's ouster. Banks have been told to prepare their systems by mid-October and allow a 12-month "coexistence period" during which old and new notes will circulate together.

Economists say the revaluation is partly driven by concerns over roughly 40 trillion pounds circulating outside the formal banking system. Bringing cash back under central oversight could give authorities greater control of the money supply.

Still, experts warn of challenges. Karam Shaar, a Syrian economist and UN consultant, said revaluations often confuse consumers, especially the elderly, and Syria lacks the regulatory framework to implement such a significant shift nationwide. He suggested that simply issuing higher-denomination notes—such as 20,000 or 50,000-pound bills—might have been a cheaper alternative.

The revaluation also comes as Syria's new government promotes free-market reforms and loosens restrictions on foreign currency use, even as dollarisation spreads through its economy.