A D-Metric Analysis of The Denomination Structure of The Syrian Pound

In recent years, Syria experienced rising levels of inflation. Accompanied by a high reliance on cash. The Central Bank of Syria is led to put higher banknotes into circulation, the SP2000 in 2017 and the SP5000 in 2021. Rumors are now circulating that the SP10000 will be issued and put into circulation very soon. Higher denominations of the Syrian Pound have not been issued since 1997, since the introduction of SP1000. This study aims to investigate whether the introduction of the SP1000, SP2000 and SP5000 banknotes was appropriate and done on the right timing and whether a higher banknote must be issued in the near future. That is why the D-Metric model is used to analyze the changes in  the denomination structure of the Syrian Pound during the period 1997 to 2022. The findings of the D-Metric model reveal that the introduction of the SP1000 was premature and should have been postponed until year 2005. The introduction of the SP2000 and SP5000 notes however was consistent with the predictions of the D-Metric model. The findings also reveal that it was appropriate to introduce the SP10000 since 2020 and that the introduction of the SP20000 should be done by 2024. 

Keywords:  Currency structure, Syrian Pound, D-Metric model.