Syrian Pound Potentials After Sanctions Have Been Lifted

The air feels different in Syria these days. Markets are buzzing a little louder, trade trucks are rolling more frequently across reopened borders, and there’s cautious optimism spreading among merchants and workers alike. After years of crippling sanctions, 2025 has brought a new beginning. International restrictions that once froze Syria’s economy are now lifted, and the country is slowly re-entering the global economic system.

For the Syrian Pound (Lira), this shift may offer a new chance at stability, strength, and even regional relevance. But rebuilding trust in a currency battered by war, inflation, and isolation will take more than open borders. It will take coordinated policy, new investments, and clear, steady reforms. 

Let’s get a deeper look by breaking down the main areas where change is already taking place and explain how each could shape the future of the SYP.

Economic Corridors

The reopening of Syria’s trade corridors is one of the clearest signs of recovery. These trade routes once served as lifelines for Syria’s economy. Today, they’re being repaired, upgraded, and put back into service.

• Historic Routes Back in Action: Trade roads like Damascus–Baghdad and Aleppo–Gaziantep are once again seeing movement. Iraq, one of Syria’s biggest trading partners, is restoring commerce ties, while Syria is modernizing customs stations to meet new logistical and security needs. This means goods, fuel, and services are flowing again—and importantly, SYP transactions are being revived.
• Border Crossings Reopened: Crossings with Jordan, Lebanon, and Iraq are now open. The al-Naseeb crossing with Jordan, once generating over $600 million in annual trade, is operational. This has sparked optimism among local businesses, who can now sell more products abroad and import what they need at lower costs.
• Port Upgrades: Syria’s ports are also getting attention. Latakia Port is undergoing a €230 million expansion, aiming to handle up to 13 million tons of goods yearly. Tartus Port is being improved as well. These facilities are critical for trade and customs revenue—both of which feed directly into demand for the SYP.
• Regional Trade Deals: Syria is signing new trade agreements with Turkey and Iraq. Lower tariffs and faster customs clearance are making trade easier. The Ministry of Economy has prioritized exports, which not only brings in foreign currency but also strengthens demand for local products—and thus, for the local currency.
• Rise in Syrian Pound Transactions: As trade improves, more settlements are happening in the SYP. This rising demand supports currency stability and encourages people to use the SYP in daily life and cross-border business.

Agricultural and Energy Sectors

Agriculture and energy are cornerstones of Syria’s economy. Both sectors suffered heavily under sanctions but are now beginning to show signs of life.

• Restarting Agriculture: Post-sanctions, Syria can now import farm machinery, fertilizers, and pesticides more freely. International partnerships are returning, and farmers are beginning to rebuild. In 2025, Syria held its first international agricultural expo since 2011—drawing attention from regional investors.
• Key Crops Recovering: Wheat, olives, and citrus fruits are core to Syria’s agricultural exports. With better border access and new farming technology, these crops are not just feeding Syrians but being shipped abroad. This means more revenue in Syrian Pound and stronger confidence in the economy.
• Reclaiming Energy Resources: Some of Syria’s largest oil and gas fields—Al-Omar, Conoco, and others—have returned to state control. These sites are now active again, with production expected to rise sharply in the coming year.
• Boosting Power Supply: Deals with Turkey and Qatar to deploy floating power plants are already making a difference. Electricity generation is expected to increase by 50%, making industry and daily life more stable. This helps factories, small businesses, and households—all of which need predictable energy to function.
• Attracting Investment: With fewer restrictions, foreign investors are eyeing opportunities in agro-processing, energy infrastructure, and renewables. These projects can build long-term income streams and support a stable currency if managed properly.

International Aid and Rebuilding Programs

Aid is returning to Syria—not just for humanitarian needs, but also for rebuilding infrastructure and institutions.

• Humanitarian Aid Returns: Organizations like the UN, EU, and global NGOs are once again allowed to operate in Syria without legal barriers. Their funding arrives mostly in foreign currencies like USD and EUR, but once inside Syria, this aid is often converted to SYP for local spending. This increases supply and circulation of the SYP, strengthening demand.
• Infrastructure and Job Creation: New aid isn’t just handing out supplies. It’s creating jobs through roadwork, school repairs, and hospital upgrades. These programs increase household income and boost consumer activity, all of which rely on and reinforce the SYP.
• Reforms Tied to Aid: Much of the aid comes with expectations. Donors demand transparency, financial audits, and reforms in governance. This improves Syria’s image among investors and can lead to more trust in the Central Bank and its handling of the currency.
• Managing Inflation Risks: There’s a real risk: if too much aid floods the economy too fast, it can drive prices up. But if managed well—channeled into productivity rather than consumption—aid can be a stabilizing force for the SYP.

Infrastructure Investments and Lira Support

Rebuilding Syria means rebuilding roads, telecoms, airports, and water systems. These efforts are central to any long-term improvement in the currency.

• Major Infrastructure Projects: Syria is now investing in airports, roads, railways, telecom networks, and power grids. These projects create jobs, increase mobility, and lay the foundation for growth—all while boosting demand for the SYP in wages, contracts, and spending.
• Return of the Diaspora: Many Syrians who left during the war are now returning—with cash, skills, and business ideas. This wave of diaspora returnees is expected to spark new economic activity, which supports the SYP both psychologically and practically.
• Construction Boom: Infrastructure development supports a range of industries—cement, steel, glass, transport, logistics. These sectors create ripple effects in the domestic economy, increasing the flow and usage of the Syrian Pound.
• Risks to Currency Stability: If these projects are poorly managed or plagued by corruption, they could fail to deliver benefits. This would damage public confidence and hurt the SYP. Careful oversight is key to turning investments into real growth.

GCC, Iran, and Turkey: 

Syria’s regional relationships play a huge role in its economic recovery and the future of the SYP.

• Gulf States Reengage: Countries like Saudi Arabia, UAE, and Qatar are renewing their political and economic engagement with Syria. This could lead to major reconstruction deals, banking partnerships, and even currency cooperation. If handled well, this support can uplift the SYP.
• Iran’s Strategic Presence: Iran has been a long-standing ally. With sanctions lifted, barter deals in oil, gas, and construction are expected to increase. These could be settled partially in SYP, increasing its role in bilateral trade and giving it broader use.
• Turkey Reopens Customs: Turkey has opened several customs gates, allowing more goods and labor to flow. Tariff reductions are making trade easier. If the SYP gains a foothold in these cross-border exchanges, it could see a major boost.
• Currency Competition: A key challenge is the strength of neighboring currencies. If Syria fails to stabilize the SYP, regional players may prefer to transact in Turkish lira, Iranian rial, or Saudi riyal. The SPY’s (Lira) survival as a regional currency will depend on whether Syria can maintain trust, control inflation, and foster demand.

Final Thoughts:

Syria is on the edge of transformation. Lifting the sanctions has opened the gates for trade, investment, and development. The Syrian Pound has a real shot at regaining value—but only if the government continues on the path of reform, builds investor trust, and manages this recovery wisely.

The opportunities are there. Trade routes are open. Crops are growing. Oil is flowing. Aid is arriving. What happens next will depend on how these opportunities are used. With smart decisions, Syria could see a strong and stable SYP (Lira) once again. But momentum without discipline is not enough.

Only consistent growth, solid institutions, and clear policies can turn this hopeful moment into lasting financial health.