Central Bank of Syria

History

At independence, French- and British-owned banks dominated banking activity in Syria. The largest bank, the French-owned Banque de Syrie et du Liban (Bank of Syria and Lebanon), assumed central bank functions and became the bank of currency issue, in addition to its commercial operations. Syria joined the International Monetary Fund (IMF) on April 10, 1947 and fixed the exchange rate at £S 2.19 to US$1.

The law to establish the Central Bank of Syria was passed in 1953, but the bank did not operate until 1956. Its functions included issuing notes, controlling the money supply, acting as fiscal agent for the government, and controlling credit and commercial banks. It was also to act as the country's development bank until specialized banks were established for various sectors. The Central Bank had considerable discretionary powers over the banking system but was itself responsible to and under the control of the Council on Money and Credit, a policy group of high-ranking officials.

After the 1956 Suez War, French and British banking interests were seized as enemy assets. In 1958, and after the union with Egypt, the state began to Arabize the commercial banking system and in 1961 implemented a policy of limited nationalization.

In 1966, the state nationalised all commercial banking, merging all existing commercial banks into a single consolidated Commercial Bank of Syria. The government also created specialized banks to promote economic development.

Since the start of the Syrian Civil War, the Central Bank building was attacked three times: in April 2012 a rocket-propelled grenade was fired at the building; in April 2013 it was affected by a car bombing nearby; and in October 2013 it was hit by mortar shells.

International sanctions under the Assad regime

The United States has imposed sanctions against the then Ba'athist-controlled Central Bank of Syria since May 2004, but making them vulnerable to economic disruptions in those countries.

Due to the Ba'athist regime's role in the Syrian civil war, the U.S., Canada, EU, Arab League and Turkey have all imposed sanctions on Syria, including the Syrian Central Bank. The Syrian Central Bank has been actively trying to undermine these various sanctions, with bank officials meeting friendly institutions such as Gazprombank executives in Moscow in March 2012. The Bank has taken an increasingly clandestine role in the domestic private sector as the country's failing economy has deterred foreign investment.

On 23 December 2020, the US Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned the Central Bank of Syria along with nine other entities and seven individuals, due to their role during the Syrian Civil War.

Recent history

After the fall of the Assad regime, looters stole some money from the central bank building but that the main vault had remained untouched according to head of the Damascus Chambers of Commerce. Afterwards, the UK and the EU lifted its sanctions against the Central Bank. Canada eased its sanctions as well.

On December 30, 2024, Maysaa Sabreen was appointed as the first female Governor of the Central Bank. She resigned on March 27, 2025, and was succeeded by Abdulkader Husrieh.

On 19 June 2025, Syria completed its first international bank transaction through the SWIFT system since the start of its 14-year civil war. Later that year, on 20 November, the Central Bank of Syria sent its first message via the SWIFT system to the Federal Reserve Bank of New York.

Gold reserves

In April 2012, Reuters reported that since the outbreak of the Syrian Civil War in 2011, Syria's gold reserves have been cut in half from the pre-civil war level of about $17 billion, with the Syrian government using the reserves to cope with international sanctions. The Governor of the Central Bank Adib Mayalah has sought to deny these reports. This is similar to how the Syrian government is using its foreign reserves to meet the demands of a budget deficit which has greatly increased to about US$6.7 billion.

List of governors

References

References

1. Jan Weidner. (2017). "The Organisation and Structure of central Banks". Technische Universität Darmstadt.
2. "CBS's Branches in Syria".
3. "Governor Message".
4. "List of Members' Date of Entry".
5. (1952). "Third International Report - Exchange Restrictions".
6. [http://countrystudies.us/syria/46.htm Banking and Monetary Policy]
7. (9 October 2013). "Mortars hit Syria central bank in Damascus". NOW.
8. (29 November 2019). "Lebanon crisis wreaks havoc on Syria's war-torn economy".
9. (29 April 2011). "US trade and financial sanctions against Syria".
10. Cutler, David. (28 November 2011). "Factbox: Sanctions imposed on Syria".
11. (30 November 2011). "Turkey Slaps Economic Sanctions on Syria".
12. "Canadian Sanctions | Foundation for Defense of Democracies".
13. (14 August 2012). "Syria's Russian Connection".
14. (4 November 2011). "Syria backs down over import ban".
15. (8 February 2025). "Treasury Targets Syrian Regime Officials and the Central Bank of Syria".
16. (10 December 2024). "Syria central bank vaults left unscathed by Damascus looters, sources say".
17. (6 March 2025). "Update on Syria: Lifting asset freezes on 24 entities".
18. (24 February 2025). "Syria: EU suspends restrictive measures on key economic sectors".
19. (13 March 2025). "Statement from Minister Joly and Minister Hussen on the situation in Syria".
20. [https://www.reuters.com/world/middle-east/syrias-new-rulers-appoint-maysaa-sabrine-lead-central-bank-official-says-2024-12-30/ Syria appoints Maysaa Sabrine as first woman to lead central bank, official says] [[Reuters]]. Timour Azhari. December 30, 2024.
21. (27 March 2025). "Syrian Central Bank governor submits resignation".
22. (27 March 2025). "تعيين عبد القادر حصرية حاكما لمصرف سوريا المركزي خلفاً لميساء صابرين.. من هو وماهي مسيرته المهنية؟".
23. (19 June 2025). "Exclusive: Syria completes first global SWIFT transfer since war, governor says". Reuters.
24. (20 November 2025). "Syria Sends First SWIFT Message to New York Fed, Central Bank Governor Says". Asharq Al-Awsat.
25. (18 April 2012). "Syria selling gold reserves as sanctions bite: sources".
26. (20 April 2012). "Skepticism overshadows Syria's gold reserves".
27. (2012-07-04). "Syria reverts to socialist economic policies to ease tension". Reuters.