Syria will be fully reconnected to the SWIFT international payment system "in a matter of weeks" after more than a decade of sanctions, the country's central bank governor said on Monday.
In an interview with the Financial Times (FT) in Damascus, central bank chief Abdulkader Husrieh detailed a road map for restructuring the country’s financial system and monetary policy in order to rebuild the decimated economy.
We "aim to enhance the brand of the country as a financial hub, given the expected foreign direct investment in rebuilding and infrastructure – this is crucial," Husrieh told the FT.
"While significant progress has been made, there’s still much work ahead," he added.
Syria has been cut off from global markets since 2011 and the start of a long civil war that left the country isolated, its infrastructure crumbling, and most of the population living below the poverty line.
Yet, since the fall of the Bashar Assad regime late last year, new authorities have received a major reprieve last month when U.S. President Donald Trump unexpectedly announced the lifting of sanctions. The European Union soon followed, while last week it also said it would provide a 175 million euros ($200 million) package to support Syria's social and economic recovery.
European Commissioner for the Mediterranean Dubravka Suica said Syria is at a "pivotal moment" with a real chance to shift from conflict to peace and stability. "We remain firmly committed to supporting Syrians in this crucial phase," she said.
Rejoining the SWIFT system would mean another significant step for Damascus on a path of normalization and rebuilding.
SWIFT’s return will help encourage foreign trade, cut import costs and facilitate exports, the central bank governor said. It would also bring much-needed foreign currency into the country, strengthen anti-money laundering efforts and ease the dependence on informal financial networks for cross-border trade.
"The plan is for all foreign trade to now be routed through the formal banking sector," Husrieh said.
Before Assad’s ousting, the Syrian pound had lost about 90% of its value against the dollar. It has since strengthened, but is still volatile, with differences remaining between the official and black market rates. Husrieh said he aimed to unify the rates and was "transitioning towards a managed float" of the pound.
