Over the past decade, the Syrian pound (SYP) has faced a catastrophic decline, plummeting from approximately 50 SYP per US dollar in 2011 to around 13,000 SYP in 2024. This dramatic devaluation went hand in hand with hyperinflation, pushing the consumer price index from 148 in 2011 to an astonishing 40,499 in 2024. The economic fallout has been devastating, with over 70% of Syrians now living below the international poverty threshold of $3.65 per person per day.

Through its SERAJ (Economic Renewal Journey) Program, LIMS attributed Syria’s monetary crisis to the unchecked expansion of money supply. The Syrian government has been heavily reliant on printing money to finance its fiscal deficits, a practice that has led to inflationary pressures and the depreciation of the currency. Without sufficient foreign reserves, access to international capital markets, or structural economic reforms, the government has resorted to monetizing its debt, exacerbating the crisis.

As policymakers debate whether Syria should adopt a floating exchange rate, a fixed peg, or a managed float, LIMS argues that these discussions overlook the core issue: excessive money printing. Regardless of the monetary regime, an undisciplined expansion of the money supply will inevitably lead to depreciation and economic instability. The real solution lies in adopting a strict, rule-based monetary framework that limits the government’s ability to create money indiscriminately. LIMS outlines several potential mechanisms to restore confidence in the Syrian pound and curb inflation.