Syria is planning to print a new currency in the United Arab Emirates and Germany instead of Russia, ending its relationship with Moscow, which had taken on the project.

According to Reuters, citing three sources with knowledge of Syria‘s decision, the move comes both after Damascus improved relations with Arab states and the easing of US sanctions, which give the country new opportunities.

They will remove Assad’s face from the new currency

Reuters also reports that Syrian authorities began exploring the possibility of printing currency in Germany and the United Arab Emirates earlier this year – efforts that intensified after the EU eased sanctions imposed on Damascus in February.

The same news outlet reports that a number of organizations, including state-owned Bundesdruckerei and private company Giesecke+Devrient in Germany, have already expressed interest in printing the new Syrian currency – information that the companies themselves have not confirmed at the moment, however. In the Emirates, Syrian authorities are reportedly in advanced negotiations for a currency printing deal with the Oumolat company, which was visited by the country’s central bank governor and finance minister during a trip to the UAE earlier this month.

In redesigning the new currency, Syria will remove the face of its former leader, Bashar al-Assad, from some notes that remain in circulation.

Effects on Syria’s economy – Relations with Russia

Syria’s new leaders are trying to move quickly to rebuild an economy in collapse after 13 years of war. Recently, the situation has been further exacerbated by a shortage of banknotes. At the same time, banks are not allowing businesses and depositors to access their savings, putting pressure on an economy already plagued by competition from cheap imports.

One of Assad’s key backers, Russia, printed Syria’s currency during the decade-long civil war after EU sanctions led to the termination of a contract with a European company.

The new leaders in Damascus have maintained relations with Moscow even after Assad fled to Russia last December, receiving several shipments of cash as well as fuel and grain in recent months, with Russia seeking to maintain its two military bases in the coastal region of Syria.

This has caused concern in European countries seeking to limit Russia’s influence amid the war in Ukraine.

Today, Friday 16 May, one Syrian pound is equivalent to 0.00007 euro, and 1 euro is equivalent to 14.553 pounds of Syrian.