Everything changed in Damascus this month. If you haven't been watching the news, you might still think of the Syrian economy as a total black hole of hyperinflation. For years, checking the rate for 1 USD to Syrian Pound was a depressing daily ritual for millions. You'd see the numbers climb from 50 to 500, then 5,000, and eventually past 14,000. People were literally carrying backpacks full of cash just to buy groceries. It was madness.
But as of January 2026, the game is different.
The Great Redenomination: Why the Zeros Are Gone
Honestly, the new government under President Ahmad al-Sharaa had no choice. The old currency was physically falling apart, and mentally, nobody trusted it. On January 1, 2026, the Central Bank of Syria officially began circulating new banknotes. They didn't just change the pictures—they chopped off two zeros.
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Basically, if you had 100 "old" Syrian pounds, they are now worth 1 "new" Syrian pound.
This technical redenomination is designed to simplify life. You've probably seen the photos of the new 500-pound notes replacing the massive stacks of 5,000s that used to feature the Assad family. It’s a symbolic fresh start, but as any economist like Karam Shaar will tell you, changing the paper doesn't automatically change the value of what's in your pocket.
The Current Rate Breakdown
Right now, the numbers look weirdly small compared to last year. Here is the approximate reality of the market as we hit mid-January:
- The "New" Official Rate: The Central Bank is aiming for a stabilized range around 110 to 115 SYP per 1 USD.
- The Street Reality: In the markets of Aleppo and Damascus, the black market (or "parallel market") is still twitchy. You might find traders asking for 118 to 125 SYP for a single dollar.
- The "Old" Value: For those still holding the old bills, 1 USD to Syrian Pound is still hovering around that 11,800 to 12,000 mark in terms of purchasing power.
It's a 90-day transition period. If you’re holding old cash, you have until the end of March 2026 to swap it at designated centers. Don't wait until the last minute. History shows these windows close fast, and the "old" paper will likely become worthless for anything other than a museum collection very soon.
Why 1 USD to Syrian Pound Still Fluctuates
You’d think after a regime change and a new currency, things would just flatten out. Not quite. The economy is still in a "wait and see" mode.
One big reason for the volatility is the lifting of the Caesar Sanctions. The US government finally pulled back on some of the heaviest restrictions late last year. That’s huge. It means foreign investment can actually flow into the country without companies fearing a legal hammer from Washington. But that investment isn't a faucet you just turn on; it's more like a slow drip.
Supply and demand still rule the day.
There's a massive "pent-up demand" for imports. Syrians have been deprived of basic goods, tech, and machinery for over a decade. Now that the borders are more open, everyone wants to buy stuff from abroad. To do that, they need dollars. When everyone wants dollars at the same time, the price of the dollar goes up, and the Syrian pound takes a hit.
The Hawala Factor
Most people sending money to family in Syria don't use Western Union or big banks. They use hawala—an informal network of brokers. These guys are the real market makers. For years, they operated in the shadows because the previous regime criminalized using dollars.
Today, using foreign currency is largely legalized. The Central Bank Governor, Mokhles Nazer, is trying to bring these hawala operators into the light. If he succeeds, the gap between the official rate and the street rate for 1 USD to Syrian Pound will finally close. If he fails, we’re back to the same old double-pricing system that ruined the economy for 14 years.
Misconceptions Most People Have
A lot of folks think a "stronger" currency means the economy is fixed. That's a trap.
Just because the rate went from 11,000 down to 110 doesn't mean bread is cheaper. In fact, many shopkeepers are using the currency swap as an excuse to round prices up. If something cost 750 old pounds, they might try to charge 10 new pounds instead of 7.50. It’s a classic "inflation by rounding" trick.
Also, the "appreciation" we saw in early 2025 wasn't always based on productivity. It was often because the government froze bank withdrawals. When people can't get their pounds out of the bank, there are fewer pounds to trade for dollars. It creates a fake scarcity that makes the pound look stronger than it actually is.
What This Means for Remittances and Travel
If you’re sending money home or planning to visit, here’s the deal.
The volatility is the highest it’s been in months because of the 90-day swap window. If you send USD through official channels, check the "bulletin rate" first. If the gap between that and the street rate is more than 10%, you're better off waiting a few days or using a licensed exchange house in Damascus that tracks the market more closely.
Don't carry huge amounts of old bills. The 5,000 and 2,000 notes with the old faces are being phased out. If you're entering the country, the new 500-pound notes are your best friend. They are easier to carry and accepted everywhere without the "sanctions tax" that used to plague the old system.
Actionable Insights for 2026
Looking at the chart for 1 USD to Syrian Pound, we aren't seeing a straight line. We’re seeing a heartbeat. To navigate this, you need to be practical.
- Monitor the "New" Denominations: Keep an eye on the 50, 100, and 500 new pound bills. These are the benchmarks for the "new" economy.
- Verify the Source: Websites like Syria Report or official Central Bank bulletins are okay, but local Telegram channels often give you the "real" rate 24 hours before the banks catch up.
- Hedge Your Risk: If you’re a business owner in Syria, don’t keep all your liquid assets in SYP just yet. The redenomination is a technical fix, not a magic wand. Wait for the trade deficit to stabilize before fully committing to the pound.
- Exchange Early: If you have old currency, the deadline is late March 2026. Do not wait until the final week; the lines at the exchange centers will be blocks long, and liquidity might run dry.
The goal for the next six months is stability. If the rate for 1 USD to Syrian Pound can stay between 110 and 130 for the rest of the year, it will be the first time in a generation that Syrian families can actually plan for the future without fearing their savings will evaporate overnight.