Syrian Central Bank Restores Accounts at the Fed, Turkish and French Central Banks
Syria's central bank governor announced that the bank has reactivated its accounts at the Turkish central bank, the French central bank, and the US Federal Reserve, and is working on accounts in other countries. He also outlined restructuring plans and new banking sector legislation expected within weeks.
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Key points
- Accounts reactivated at the Turkish and French central banks and the US Federal Reserve
- Work under way to reactivate accounts in additional countries
- New staff hired from abroad as part of a restructuring plan
- New organizational structure and plan to strengthen compliance and governance
- New banking legislation strategies to be announced within weeks
What did Syria's central bank governor announce?
The governor of the Central Bank of Syria announced that the bank has reactivated its accounts with three foreign central banks: the Central Bank of the Republic of Türkiye, the Banque de France, and the US Federal Reserve. These are correspondent accounts that central banks hold with one another to conduct cross-border and interbank operations, and access to them is a basic requirement for a country's reintegration into the global financial system.
The statements did not include figures on the size of the reactivated balances, and the announcement does not by itself imply any immediate change in the day-to-day transfer channels used by individuals and businesses. Syria's banking sector spent years cut off from much of the international financial system, making restored central-bank accounts a significant procedural step.
Restructuring the Central Bank and strengthening governance
The governor said the bank has recruited new staff from abroad as part of a restructuring plan, and has adopted a new organizational structure and a new plan aimed at strengthening compliance and institutional governance. Compliance frameworks covering areas such as anti-money-laundering controls are typically a precondition for foreign central banks and international correspondent banks to maintain ties with a previously isolated institution.
The emphasis on hiring from abroad also signals an effort to bring in technical expertise for rebuilding the bank's institutional capacity.
New banking legislation within weeks
The governor stated that the bank intends to announce new strategies for the legislation governing the banking sector within weeks. This refers to the laws and circulars that define how banks in Syria are licensed, supervised, and regulated.
He also confirmed that work is ongoing to reactivate the central bank's accounts in countries beyond the three already named, which could eventually widen the bank's ability to conduct external transactions.
What does this mean for Syrians?
For Syrians inside the country, these steps signal an attempt to reconnect the banking system with the outside world, which could gradually affect banking and trade operations if the process continues. For the Syrian diaspora, such news is often watched for what it may mean for money transfers and dealings with local banks, though the governor's statements do not indicate any immediate change on that front.
The practical impact will depend on details that have not yet been disclosed, including the size of the balances involved and the content of the promised legislation expected within weeks.
Frequently asked questions
Which accounts has the Central Bank of Syria reactivated?
The governor announced reactivated accounts at the Central Bank of the Republic of Türkiye, the Banque de France, and the US Federal Reserve, with work under way on accounts in other countries not yet named.
Does this change money transfers to Syria right away?
No immediate change in daily transfer channels was announced. The step concerns the central bank's accounts with foreign counterparts, and its effect on individual transactions will depend on details not yet disclosed.
When will Syria's new banking legislation be announced?
The central bank governor said new strategies for the legislation governing the banking sector will be announced within weeks, without giving an exact date or detailed contents.
What is the Central Bank of Syria's restructuring plan?
It includes recruiting new staff from abroad and adopting a new organizational structure and plan to strengthen compliance and institutional governance, according to the governor's statements.
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