The Central Bank of Syria (CBS) announced that Syria’s account at the Federal Reserve is now operational and ready to be activated. Preparations began last July as part of broader efforts to reintegrate Syria into the global financial system after years of financial isolation.
US Response and Strategic Implications
The US Department of the Treasury described the development as a “historic” step supporting the recovery of the Syrian economy. The move carries both political and economic significance, particularly given that US sanctions on Syria date back to 1979. The development, he said, reflects a growing trend toward reintroducing the Syrian financial sector into the international banking framework.
The CBS explained maintaining an active account with the Federal Reserve would enable Syria to reconnect with the correspondent banking system and facilitate clearing and transfer operations in US dollars. They noted that SWIFT system transactions are typically completed within ten minutes 77% of the time, highlighting the efficiency of the international payment infrastructure.
The step is expected to improve the flow of remittances from Syrians abroad and foreign investors, while also enabling international trade transactions to return to official banking channels. By reducing reliance on intermediaries, the process could increase liquidity in the banking sector and significantly lower the costs of international transfers.
Expanding International Financial Cooperation
The Central Bank’s strategy to develop a financial sector aligned with global standards aiming to restore Syria’s integration into international markets. CBS is currently pursuing parallel cooperation with financial institutions in Canada and across Europe. Meetings have already occurred with the Bank of Canada and Canadian financial institutions discussing the possibility of opening an additional account for the Syrian central bank.
Discussions have also involved major banks, regulatory authorities, and currency-printing institutions. Similar engagement is underway with the European Central Bank as well as partners in Germany and France to organize joint banking forums and strengthen cooperation.
Monetary Stability and Reform
The bank refereed to the “relative stability” of the Syrian pound (SYP) as an indicator of effective monetary policy and growing confidence in the country’s financial sector, noting these developments were noted positively by the International Monetary Fund (IMF). The SYP redenomination program is progressing steadily, with approximately 40% of the cash supply currently in circulation replaced.
As part of efforts enhancing transparency and combating financial crimes, CBS announced Syria will participate in the Vienna Global Fraud Summit 2026. Participation aims to facilitate exchanges with international regulators and policymakers while learning from global practices combating money laundering and financial fraud. Officials hope such cooperation will strengthen regulatory frameworks and reinforce international confidence in Syria’s financial system.
