Syria will begin swapping old banknotes for newly issued ones from January 1, 2026, in a major currency overhaul aimed at stabilizing the Syrian pound and signaling a clean break from the Assad era, Central Bank Governor Abdelkader Husrieh said on Thursday.

The move is part of a broader effort by Syria’s new government, led by President Ahmed al-Sharaa, to overhaul state institutions and chart a new economic course after more than a decade of war, sanctions, and international isolation left the country’s finances in deep distress.

“The central bank has been given authority to decide the deadline for the swap and its locations,” Husrieh said, adding that the bank would issue detailed instructions to guide the public through the process.

People familiar with the plan told Reuters in August that Syria intends to introduce redesigned banknotes that remove two zeros from the currency, a redenomination aimed at restoring confidence in a pound that has been severely devalued. The currency has been weakened by years of conflict, the collapse of domestic production, shrinking foreign reserves, and tight sanctions imposed during Bashar al-Assad’s rule.

The redesign would also carry strong symbolic weight. Assad fled Syria in December 2024 for Russia after rebel forces seized Damascus in an eight-day offensive, ending six decades of his family’s rule. His downfall came more than 13 years after an uprising spiraled into a devastating civil war that fractured the country and crippled its economy.

Since then, Syria’s new leadership has sought to distance itself from the political and economic legacy of the Assad era. Officials have spoken openly about reshaping governance, restoring credibility to public institutions, and pursuing policies meant to stabilize prices and revive trade.

Earlier this month, Syrians marked the first anniversary of Assad’s overthrow with celebrations in major cities, reflecting cautious optimism that the country may finally be turning a page after years of hardship.

The currency swap is unfolding alongside diplomatic efforts to reposition Syria internationally. The new government has moved to rekindle ties with the United States after years of hostility, viewing improved relations with Washington as critical to easing sanctions, attracting investment, and reconnecting Syria to the global financial system. While sanctions relief remains limited and conditional, officials see institutional reforms, including changes to the monetary system, as necessary steps toward rebuilding trust abroad.

The central bank governor said concerns raised by some bankers and economists about the potential inflationary impact of issuing new notes were being taken seriously. Critics have warned that redenomination, if poorly executed, could worsen inflation and further erode purchasing power for Syrians already struggling with high prices and low wages.

Husrieh said the operation would be carried out in a “smooth and orderly” manner, stressing that it is designed as a technical exchange rather than a devaluation. He said a press conference will be held on December 27 to “explain all the details of the replacement process and deadlines,” in an effort to avoid confusion or panic.

Syria’s pound has lost most of its value over the past decade, forcing daily transactions to be conducted with large volumes of low-denomination notes and undermining confidence in the currency. Removing zeros would simplify accounting and cash transactions, but economists say the long-term impact will depend on whether the government can address deeper structural problems, such as weak output, scarce foreign currency, and limited access to international markets.

Replacing Assad-era banknotes is both an economic measure and a political statement for the new government in power. It underscores an attempt to redefine Syria’s leadership and economic trajectory while aligning domestic reforms with a cautious reopening to the outside world, including the United States.

China on Thursday accused the United States of distorting Beijing’s defense policy in a bid to obstruct improving relations between China and India, pushing back against a recent Pentagon assessment that linked easing border tensions to broader U.S.-India strategic competition.

Foreign ministry spokesperson Lin Jian made the remarks at a regular press briefing in Beijing after being asked whether China might seek to exploit a recent reduction in tensions with India over disputed border areas to prevent closer ties between Washington and New Delhi.

Lin rejected the suggestion, saying China views its relationship with India from a “strategic and long-term perspective,” and stressed that the long-running border dispute is strictly a bilateral issue.

“The border issue is a matter between China and India, and we object to any country passing judgment about this issue,” Lin said, adding that China opposes external interference or attempts to frame the issue through the lens of great-power rivalry.

His comments were aimed squarely at a U.S. Department of Defense report released on Tuesday, which said China “probably seeks to capitalize on decreased tension” along the disputed border to stabilize relations with India and prevent the deepening of U.S.-India ties.

The Pentagon’s assessment reflects Washington’s broader concerns about China’s regional strategy at a time when the United States has been intensifying its political, economic, and defense engagement with India. That push has gathered pace since the second wave of President Donald Trump’s tariff war with Beijing, which has sharply escalated economic tensions between the world’s two largest economies.

As tariffs on Chinese goods widened and hardened, Washington has increasingly looked to India as both a strategic counterweight to China and a potential alternative hub in global supply chains. U.S. officials have stepped up diplomatic outreach to New Delhi, while American companies have accelerated efforts to diversify manufacturing away from China.

Major U.S. technology firms have been at the center of that shift. Apple, in particular, has repeatedly highlighted India as a key manufacturing destination, expanding iPhone assembly there and working with suppliers to deepen local production. Other U.S. tech companies have followed suit, promoting India as a long-term base for electronics manufacturing, software development, and supply-chain resilience as trade frictions with China persist.

Against that backdrop, Washington has also strengthened defense and security cooperation with India, expanding joint military exercises, deepening intelligence sharing, and advancing defense technology partnerships as part of its broader Indo-Pacific strategy. Beijing has consistently viewed these moves as an attempt to draw India more firmly into the U.S. strategic orbit.

China, for its part, has argued that recent progress in easing border tensions should not be politicized or linked to third-party relationships. China and India, Asia’s two most populous nations, have been working to stabilize ties after a deadly clash in the Himalayas in 2020 sent relations to their lowest point in decades. Since then, military commanders and diplomats from both sides have held multiple rounds of talks aimed at disengagement and confidence-building along the disputed frontier.

Lin said those efforts are driven by the interests of China and India alone and should not be mischaracterized by outside powers. He accused Washington of selectively interpreting China’s defense posture to sow distrust between Beijing and New Delhi.

India has been caught in the U.S.’ fights with its archenemies. Earlier this year, Trump threatened to impose 50% tariff on India for buying oil from Russia, which is under U.S. sanctions. Recent developments indicate that the U.S. expects India to be wary of China as much as Russia.