Syria’s Central Bank Achieves Milestone with International Bank Transfer
Syria’s central bank Governor, Haslier Abdelkadar, announced on Thursday that the new government has accomplished a significant feat by completing its first international bank transfer using the Swift system.
Since 2011, Syria has been excluded from the global transaction system, a result of the harsh civil war initiated by dictator Bashar Assad to cling to power. This exclusion has made it challenging for the country to engage in international transactions.
The Swift network, which stands for the Society for Worldwide Interbank Financial Telecommunication, is a secure messaging system that facilitates transactions between banks globally. Established in the early 1970s, it’s a more efficient successor to older systems like telex. While it doesn’t actually transfer money, moving funds internationally is nearly impossible without it. This is why sanctions against nations can effectively begin by removing their financial institutions from Swift, as seen with Assad’s regime in 2011 and, more recently, with Russia following its invasion of Ukraine in 2022.
After being ousted in December 2024, Assad’s regime was replaced by a new government that aims to shed its previous international image and lift sanctions. As they navigate this complicated landscape, they are eager to demonstrate a commitment to international norms and to attract investment for reconstruction.
There’s a mutual interest from the West in lifting these sanctions, particularly since there are significant opportunities for profit in rebuilding Syria. The longstanding humanitarian crisis, exacerbated by prolonged conflict, cannot be resolved until Syria fully reintegrates into the global community.
Western leaders, however, express caution. Concerns linger about past connections of Syrian officials with extremist groups such as al-Qaeda and the Islamic State. The ongoing threat of sectarian violence and ethnic cleansing remains a significant issue, particularly for the country’s minority populations.
During Donald Trump’s presidency, the outlook for the new government seemed somewhat promising. Syrian interim president Ahmed Arshara conveyed optimism about his leadership, especially after discussions with Trump, who mentioned he might lift some U.S. sanctions against the Assad administration.
Governor Haslier indicated that the recent transfer through Swift marks a pivotal moment for regular trade between the Bank of Syria and Italian banks, which are now actively exploring reconstruction efforts in the region. He remarked, “Now the doors are open to deals like this.”
After a virtual meeting that included high-ranking officials from both Syrian and U.S. sides, Haslier expressed hope that the first transactions with U.S. banks would commence very soon. He stated, “We have two distinct goals: establishing a regular U.S. bank office in Syria and resuming trade between the Syrian bank and U.S. banks, which is anticipated in the upcoming weeks.”
Prominent financial institutions like JP Morgan, Morgan Stanley, and Citibank reportedly participated in the recent discussions, emphasizing the need for substantial reforms within the Syrian financial landscape, especially regarding protections against money laundering and the financing of terrorism.
A Lebanese banker, Yasem Ajaka, commented on the significance of this transaction, stating, “This marks the beginning of a new era in Syria. This first rapid order symbolizes the end of sanctions under the international community’s watch and signals Syria’s return.”
He also highlighted the current hardships faced by foreign executives looking to invest in Syria, noting that they often have to carry large sums of cash to make payments locally, as everyday transactions remain difficult due to the currency’s devaluation.
