Syria Central Bank Floats New 5,000 Lira Banknote Amid Soaring Inflation

The new 5,000 Lira banknote issued in Syria
The new 5,000 Lira banknote issued in Syria
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Syria Central Bank Floats New 5,000 Lira Banknote Amid Soaring Inflation

The new 5,000 Lira banknote issued in Syria
The new 5,000 Lira banknote issued in Syria

The Central Bank of Syria (CBS) on Sunday issued a new banknote for a denomination of 5,000 Liras, the largest to date, amid the worst economic and living crisis facing the country since the start of the conflict nearly 10 years ago.

Announcing the new bill on its official Facebook page, CBS revealed that it started printing the newly-designed banknote some two years ago and that it bears on one side a photo of a soldier saluting the Syrian flag along with a fresco from the Baal Shemin Temple in the ancient city of Palmyra.

This is the third time that CBS issues new banknotes to confront inflation within the last five years. According to international economic reports, the inflation rate in Syria reached 263.64% in 2020.

Syria’s currency has been on a downward spiral since the conflict began in 2011. Trading that year at 48 liras to the dollar, it’s now officially up to trading at 1,256 liras to the dollar. On the black market, the dollar is trading at nearly double the official value.

The currency crash has sent prices of food and basic goods soaring.

The economic hardship has been made worse by the pandemic restrictions, increased Western sanctions on the Syrian government and its allies for their role in the war, and years of corruption and mismanagement

The World Food Programme (WFP) has recorded a 249% hike in the price of basic foods and warned that 9.3 million Syrians are living in food insecurity, with more than 2 million more at risk.

It is worth noting that the new banknote released by CBS is worth about four dollars at the official rate.

CBS said that the new banknote was issued "to meet the need of the market, facilitate cash transactions and reduce their costs."

In other news, banknotes denominating 50, 100, 200 Liras have been put out of circulation due to their staggeringly diminished value.

Several years ago, CBS printed new 50, 100, 200, 500, and 1000 Liras banknotes and put them into circulation. Notes were printed in 2015 and put into circulation in the second half of 2017.



Trump Bails 'Big Progress' in Japan Tariff Talks

Japanese Prime Minister Shigeru Ishiba reacts as he speaks to reporters after a Japanese negotiator held ministerial talks at the White House regarding US tariffs, at the prime minister’s official residence in Tokyo, Japan, 17 April 2025. FRANCK ROBICHON/Pool via REUTERS
Japanese Prime Minister Shigeru Ishiba reacts as he speaks to reporters after a Japanese negotiator held ministerial talks at the White House regarding US tariffs, at the prime minister’s official residence in Tokyo, Japan, 17 April 2025. FRANCK ROBICHON/Pool via REUTERS
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Trump Bails 'Big Progress' in Japan Tariff Talks

Japanese Prime Minister Shigeru Ishiba reacts as he speaks to reporters after a Japanese negotiator held ministerial talks at the White House regarding US tariffs, at the prime minister’s official residence in Tokyo, Japan, 17 April 2025. FRANCK ROBICHON/Pool via REUTERS
Japanese Prime Minister Shigeru Ishiba reacts as he speaks to reporters after a Japanese negotiator held ministerial talks at the White House regarding US tariffs, at the prime minister’s official residence in Tokyo, Japan, 17 April 2025. FRANCK ROBICHON/Pool via REUTERS

President Donald Trump touted "big progress" in tariff talks with Japan on Wednesday, in one of the first rounds of face-to-face negotiations since his barrage of duties on global imports roiled markets and stoked recession fears.

Japan had not expected the president to get involved in Wednesday's talks, viewing them as a preliminary, fact-finding mission, a sign that Trump wants to keep tight control over negotiations with dozens of countries expected over coming days and weeks, Reuters said.

Tokyo had also been hoping to limit the scope of the talks to trade and investment matters. But announcing his involvement early Wednesday, Trump said thorny issues including the amount Japan pays towards hosting US troops were among discussion topics.

"A Great Honor to have just met with the Japanese Delegation on Trade. Big Progress!" Trump said in a social media message that contained no details of the discussions.

Opposite Trump was Ryosei Akazawa, a close confidant of Japanese Prime Minister Shigeru Ishiba who serves in the relatively junior cabinet position of economic revitalization minister.

Speaking to reporters after the talks, Akazawa gave few details but said the parties had agreed to hold a second meeting later this month and that Trump had said getting a deal with Japan was a "top priority".

Exchange rates, which the Trump administration has said Japan and others manipulate to get a trade advantage, were not part of the talks, Akazawa added.

The dollar strengthened against the yen after his remarks on forex, up around 0.5% on the day. Tokyo denies it manipulates its yen currency lower to get make its exports cheaper.

Akazawa held a 50-minute meeting with Trump at the White House before another session with his Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer that stretched to almost an hour and a half, according to Japanese readouts of the talks.

Japan's prime minister, who has previously said he won't rush to reach a deal and does not plan to make big concessions, sounded a more cautious tone speaking to reporters later in Tokyo.

"Of course, the negotiations will not be easy going forward, but President Trump has stated that he wants to give top priority to the talks with Japan," Ishiba said.

Italian Prime Minister Giorgia Meloni heads to the White House on Thursday to discuss tariffs imposed on the European Union with Trump, while Bessent has invited South Korea's finance minister to Washington for talks next week.

FIRST MOVER ADVANTAGE

Trump has long complained about the US trade deficit with Japan and other countries, saying US businesses have been "ripped off" by trade practices and intentional efforts by other countries to maintain weak currencies.

Japan has been hit with 24% levies on its exports to the United States although these rates have, like most of Trump's tariffs, been paused for 90 days. But a 10% universal rate remains in place as does a 25% duty for cars, a mainstay of Japan's export-reliant economy.

Bessent has said there is a "first mover advantage" given Washington has said more than 75 countries have requested talks since Trump announced sweeping duties on dozens of countries - both friend and foe - earlier this month.

Akazawa declined to comment on the matter, adding only that he strongly requested a revocation of the tariffs and that he believed Washington wanted to secure a deal in the 90-day window.

Washington is hoping to strike deals with countries that would cover tariffs, non-tariff barriers and exchange rates, Bessent has said, though Tokyo had lobbied to keep the latter separate.

Trump earlier this month lambasted Japan for what he said was a 700% tariff on rice, a figure Tokyo disputes. Levies on autos are particularly painful for Japan as they make up nearly a third of shipments to the US, its biggest export market.

Japan hopes that pledges to expand investment in the United States will help to convince the US that the allies can achieve a "win-win" situation without tariffs.

Possible Japanese investment in a multi-billion dollar gas project in Alaska could also feature in tariff negotiations, Bessent said before Wednesday's talks.

"It sounds like the Trump administration really does want a quick deal, which suggests it will be a less substantive deal," said Tobias Harris of Japan Foresight, a political risk advisory.

"My baseline is that if the US really starts making demands on agriculture and maybe also on some of the auto regulations, it becomes a lot more contentious and hard to do quickly."