Syria's Banks, which have been outcasts in the global financial system for a long time, are anticipated to reconnect with international lending institutions within a few weeks, according to Syria’s central bank governor. Abdulkader Husrieh told The National, A crucial step in the nation's strategy to regain its position in the worldwide market.
"We won't abandon anyone. Typically, [local] banks should have their correspondent banks established within the coming weeks," he stated.
Correspondent banking generally entails a local bank and an overseas bank working together as intermediaries for global money transfers. This plays a crucial role in facilitating transactions to and from Syria, which had been largely suspended during the situation. 14-year civil war other than a handful of particular and closely monitored instances.
Bankers in Syria told The National The talks with their international colleagues were going smoothly, with several parties already committing to reinstate relations.
This occurs as Mr Husrieh aims to attract major support. US Lenders should form partnerships with local entities and establish representative offices in Syria, following the stance of US President. Donald Trump In May, the decision was made to remove extensive economic sanctions on Syria.
“Mr. Husrieh pointed out that one cannot ignore an economy contributing about 26.1 percent of the world’s GDP.” The National , alluding to the USA.
Since the The Bashar Al-Assad government was overthrown. In a swift assault initiated by Islamist rebel factions in December, Syria has aimed at reintegrating into the international economic sphere and revitalizing its ties with Western nations.
In May, Acting President Ahmed Al Shara, who previously served as Al Qaeda The former linked fighter who transitioned into a statesman was greeted by global leaders and had an audience with President Trump in Riyadh. During their meeting, the U.S. president commended him as "a young, appealing fellow... a tough guy," noting his "very robust background."
The previous week saw Syria’s central bank governor participate in an online gathering with American and domestic banking representatives, along with US authorities, featuring Washington’s special envoy for Syria, Thomas Barrack. This initiative aimed at expediting Syria’s integration back into the international monetary framework.
Mr. Husrieh stated, "We made our goal very clear: to forge a comprehensive partnership with the American financial industry."
"The meeting went exceptionally well...it marked the first such interaction after over five decades of an effective boycott," he noted.
A process not a single occurrence
Economic sanctions against Syria, particularly those aimed at the central bank, became more severe following 2011 as well as Mr Al-Assad’s forceful response to peaceful demonstrations. This escalation significantly worsened the economic situation, resulting in approximately one out of every nine individuals falling into poverty.
Reestablishing ties with the international financial sector is essential for Syria to direct funds properly. billions In reconstruction funds expected to flood into the conflict-ruined nation.
Specialists and authorities have applauded the removal of the majority debilitating sanctions , while cautioning that full economic recovery is still far from reach.
In particular, observers highlighted that this step does not imply that foreign banks will automatically resume long-severed ties , due to worries about adherence to regulatory standards and combating money-laundering policies following decades of seclusion.
However, Mr. Husrieh stated that the Syrian financial sector is completely dedicated to following international standards.
He mentioned that Syrian banks shared their advancements and present procedures regarding AML/CFT compliance.
"The Central Bank is completely dedicated to updating its systems and conforming to global benchmarks as part of our comprehensive strategy for integration," he further stated.
Mr Husrieh stated that Syria’s return to the worldwide economic scene is a "process" instead of a single occurrence.
The initial landmark involves removing economic penalties, succeeded by setting up formal banking connections and authorizing new financial entities. This initiative does not represent a single occurrence but instead constitutes an ongoing and staged procedure designed to reinstate Syria’s comprehensive engagement within the worldwide monetary framework.
Mr Husrieh has previously outlined his road map to The National , concentrating on maintaining monetary and financial stability, drawing in international deposits, setting up an autonomous central bank, and fostering vibrant domestic financial organizations.
Mr. Husrieh stated that the region's instability has not altered his nation's perspective on reforms. "Even as strategies might adjust to shifting geopolitical circumstances, our vision and goals stay constant."