Syria Says to be Relinked to SWIFT Payment System

Asharq Al-Awsat

2 days ago

Syria will be fully reconnected to the SWIFT international payment system "in a matter of weeks" after more than a decade of sanctions, central bank governor Abdelkader Husrieh told the Financial Times in an interview published on Monday.
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 said. 'While significant progress has been made, there's still much work ahead.'
Interim President Ahmed al-Sharaa received a major boost last month when US President Donald Trump unexpectedly lifted sanctions.
While that was a welcome step, 'a full policy shift is still needed', said Husrieh, who began his new job in April. 'So far, we've only seen license issuance and selective sanctions removal. Implementation must be comprehensive, not ad hoc.'
According to the Financial Times, Husrieh has been working with the finance ministry on 'a six to 12 month stabilization plan.' This involves reforming banking laws and the central bank, and overhauling social security and housing financing to encourage Syrians in the diaspora to invest in the country, among other initiatives.
Husrieh wants to end the Assad regime's interventionist legacy, and restore lending capabilities, transparency and trust.
'The central bank previously micromanaged the financial system, over-regulated lending, and restricted deposit withdrawals,' he said. 'We aim to reform the sector through recapitalization, deregulation and by re-establishing their role as financial intermediaries between households and businesses.'
SWIFT's return will help encourage foreign trade, cut import costs and facilitate exports, he 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, thereby eradicating the role of money changers who would charge 40 cents of every dollar that came into Syria. He said banks and the central bank have been assigned Swift codes, and the 'remaining step is for correspondent banks to resume processing transfers.'
Foreign investment will also be shored up by guarantees, he said. While the public banking sector is already fully backed by the government, Husrieh is looking to establish a state institution to guarantee private banks' deposits.